Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 247

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 247
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 is significant to the fair value measurement in its entirety. The three levels of the
fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices
in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted
prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices
for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are
not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived
principally from or corroborated by observable market data by correlation or other means; and

Level 3 – Unobservable inputs,
including the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity
for the asset or liability at the measurement date.

To the extent that digital assets
are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Investment Transactions

The Trust considers investment
transactions to be the receipt of XRP for Share creations and the delivery of XRP for Share redemptions or for payment of expenses in
XRP. The Trust records its investments transactions on a trade date basis and changes in fair value are reflected as net change in unrealized
appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized
gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in XRP.

<div align='center'>F-9</div>

21Shares XRP ETF

Notes to the financial statements

(Expressed in United States Dollars)

| 2. | Significant Accounting Policies (CONTINUED) |

Calculation of Net Asset Value “NAV” and NAV per Share

On each day other than when the
exchange is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m. (Eastern Time), the net
asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value
of the XRP and other assets held by the Trust using the index price. The Trustee computes the NAV per Share by dividing the NAV of the
Trust by the number of Shares outstanding on the date the computation is made.

Federal Income Taxes

The Sponsor and the Trustee will
treat the Trust