Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 133

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 133
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 trading platform. The digital asset trading platform typically records the
investor’s ownership of XRP in its internal books and records, rather than on the XRP Ledger. The digital asset trading platform
ordinarily does not transfer XRP to the investor on the XRP Ledger unless the investor makes a request to the exchange to withdraw the
XRP in its platform trading account to an off-platform XRP wallet.

Outside of the spot
markets, XRP can be traded over-the-counter (“OTC”). The OTC market is largely institutional in nature, and OTC market
participants generally consist of institutional entities, such as firms that offer two-sided liquidity for XRP, investment managers,
proprietary trading firms, high-net-worth individuals that trade XRP on a proprietary basis, entities with sizeable XRP holdings, and
family offices. The OTC market provides a relatively flexible market in terms of quotes, price, quantity, and other factors, although
it tends to involve large blocks of XRP. The OTC market has no formal structure and no open-outcry meeting place. Parties engaging
in OTC transactions will agree upon a price — often via phone or email — and then one of the two parties
will then initiate the transaction. For example, a seller of XRP could initiate the transaction by sending the XRP to the buyer’s
XRP address. The buyer would then wire U.S. dollars to the seller’s bank account. OTC trades are sometimes hedged and eventually
settled with concomitant trades on digital asset trading platforms.

As discussed in more detail
below, barring the liquidation of the Trust or extraordinary circumstances, the Trust will not directly purchase or sell XRP, although
the Sponsor may direct the XRP Custodian to sell XRP to pay certain expenses. Instead, Authorized Participants will deliver XRP to the
Trust’s account with the XRP Custodian in exchange for Shares of the Trust, and the Trust, through the XRP Custodian, will deliver
XRP to Authorized Participants when those Authorized Participants redeem Shares.

Limits on XRP Supply

Unlike other digital assets
such as bitcoin or ether, XRP was not mined gradually over time. Instead, all 100 billion XRP tokens were created at the time of
the XRP Ledger’s launch in 2012. This means that every XRP token that exists today was generated from the outset, without the need
for a mining process. Of the 100 billion XRP generated by the X