Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 157

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 157
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 the
Trust appears to be trading at a discount compared to the IIV, a market professional could buy the Trust’s Shares on the Exchange
and sell short futures contracts. Such arbitrage trades can tighten the tracking between the market price of the Trust and the IIV
and thus can be beneficial to all market participants. Dissemination of the IIV provides additional information that is not otherwise
available to the public and is useful to Shareholders and market professionals in connection with the trading of the Trust’s Shares
on the Exchange. Shareholders and market professionals will be able throughout the trading day to compare the market price
of the Trust and the IIV. If the market price of the Trust’s Shares diverges significantly from the IIV, market
professionals will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared
to the IIV, a market professional could buy the Trust’s Shares on the Exchange and sell short futures contracts. Such arbitrage
trades can tighten the tracking between the market price of the Trust and the IIV and thus can be beneficial to all market participants.

The Trust does not expect
that price differentials for XRP across exchanges would have a meaningful impact on this arbitrage mechanism. Furthermore, the Trust
does not expect that the closure of any single one exchange would meaningfully impact the arbitrage mechanism because Authorized Participants
typically source underlying spot XRP liquidity from multiple exchanges. The Trust acknowledges, however, that this arbitrage mechanism
could potentially be adversely impacted if halts in the trading of spot XRP were to occur across multiple exchanges, whether due to breaches
or otherwise.

The Sponsor reserves the right
to adjust the Share price of the Trust in the future to maintain convenient trading ranges for Shareholders. Any adjustments would be
accomplished through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or increase (in the case
of a reverse split) the proportionate NAV per Share but would have no effect on the net assets of the Trust or the proportionate voting
rights of Shareholders or the value of any Shareholder’s investment.

Calculation of Principal Market NAV and Principal Market NAV per Share

In addition to calculating
NAV and NAV per Share, for purposes of the Trust’s financial statements, the Trust determines the Principal Market NAV and Principal
Market NAV per Share on each valuation date for such financial statements. The determination of the Principal Market NAV and Principal
Market