Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 153

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 153
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 of the Trust’s principal
market.

The Trust identifies and determines
the XRP principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the
application of fair value measurement framework in FASB ASC 820-10. This analysis is performed from the perspective of both the Trust
and the XRP Counterparty.

ASC 820-10 determines
fair value to be the price that would be received for XRP in a current sale, which assumes an orderly transaction between market participants
on the measurement date. ASC 820-10 requires the Trust to assume that XRP is sold in its principal market to market participants
or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal
or most advantageous market that are independent, knowledgeable and willing and able to transact.

<div align='center'>72</div>

Under ASC 820-10, a principal
market is the market with the greatest volume and activity level for the asset or liability. The determination of the principal market
will be based on the market with the greatest volume and level of activity that can be accessed.

The Trust receives XRP from
XRP Counterparties and may also transact on any “Digital Asset Markets”, which are defined as Exchange Markets, Brokered Markets,
Dealer Markets, and Principal-to-Principal Markets, each as defined in ASC 820-10-35-36A.

In determining which of the
eligible Digital Asset Markets is the Trust’s principal market, the Trust obtains reliable volume and level of activity information
and reviews these criteria in the following order:

First, the Trust reviews a
list of Digital Asset Markets and scopes in the markets that the Trust reasonably believes are operating in compliance with applicable
laws and regulations and those that are accessible to the Trust and the Authorized Participant.

Second, the Trust sorts the
remaining Digital Asset Markets from high to low based on volume and level of activity of XRP traded on each Digital Asset Market.

Third, the Trust then reviews
intra-day pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances
that may impact the volume or price information of a particular Digital Asset Market.

Fourth, the Trust then selects
a Digital Asset Market as its principal market based on the highest market-based volume, level of activity, and price stability in comparison
to the other Digital Asset Markets on the list. Based on information