Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 187

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 187
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 statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down into the constituent
Shares and sells the Shares to its customers; or if it chooses to couple the creation of a supply of new Shares with an active selling
effort involving solicitation of secondary market demand for the Shares. In contrast, Authorized Participants may engage in secondary
market or other transactions in Shares that would not be deemed “underwriting.” For example, an Authorized Participant may
act in the capacity of a broker or dealer with respect to Shares that were previously distributed by other Authorized Participants. A
determination of whether a particular market participant is an underwriter must take into account all the facts and circumstances pertaining
to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be considered
a complete description of all the activities that would lead to designation as an underwriter and subject them to the prospectus-delivery
and liability provisions of the 1933 Act.

Dealers who are neither Authorized
Participants nor “underwriters” but are nonetheless participating in a distribution (as contrasted to ordinary secondary
trading transactions), and thus dealing with Shares that are part of an “unsold allotment” within the meaning of Section 4(a)(3)(C) of
the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section 4(a)(3) of the 1933
Act.

While the Authorized Participants
may be indemnified by the Sponsor, they will not be entitled to receive a discount or commission from the Trust or the Sponsor for their
purchases of Baskets.

Initial Seed Creation Investor; Selling Shareholder

The Sponsor or its affiliates,
or a fund or unit investment trust for which the Sponsor or an affiliate of the Sponsor serves as sponsor or investment advisor, may
purchase Shares of the Trust through a broker-dealer or other investors, including in secondary market transactions, and because the
Sponsor and its affiliates may be deemed affiliates of the Trust, the Shares are being registered to permit the resale of these Shares
by affiliates of the Trust from time to time after any such purchase. The Trust will not receive any of the proceeds from the resale
or redemption of such Shares.

21Shares US LLC (in such
capacity, the “Initial Seed Creation Investor”) is expected to purchase initial seed creation baskets comprising of 20,000
Shares (the “Initial Seed Creation Baskets”) at a per Share price