Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 152

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 152
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 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 NAV per Share is identical to the calculation of NAV and NAV per Share, respectively, except that the value of XRP is determined
using the fair value of XRP based on the price in the XRP market that the Trust considers its “principal market” as of 4:00 p.m.
ET on the valuation date, rather than using the Pricing Benchmark.

The Trust has adopted a
valuation policy, which provides for the procedure for valuing the Trust’s assets. The policy also sets forth the procedures to
determine the principal market (or in the absence of a principal market, the most advantageous market) for purposes of determining the
Principal Market NAV and Principal Market NAV per Share in accordance with FASB ASC 820-10, which outlines the application of fair
value accounting. Under its valuation policy, the Trust determines its principal market (or in the absence of a principal market the
most advantageous market) annually and conducts an analysis at least on a quarterly basis to determine whether there have occurred any
changes in XRP markets and its operations that would require a change in the Sponsor’s determination