Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 170

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 170
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RP Counterparty in an amount that exceeds the cash or XRP credited to the Trust’s Trading Balance at the XRP Counterparty
at the time such order is submitted to the XRP Counterparty, which is expected to facilitate the Trust’s ability to process cash
creations and redemptions and pay the Sponsors Fee and any other Trust expenses not assumed by the Sponsor, to the extent applicable,
in a timely manner by seeking to lock in the XRP price on the trade date for creations and redemptions or the payment date for payment
of the Sponsor’s Fee or any other Trust Expenses not assumed by the Sponsor, rather than waiting for the funds associated with the
creation to be transferred by the Cash Custodian to the XRP Counterparty prior to purchasing the XRP or for the XRP held in the Vault
Balance to be transferred to a Trading Balance prior to selling the XRP.

In connection with a purchase
order, the Trust may first borrow cash from the Lender using the Trade Financing Agreement, and then purchase XRP. In connection
with a redemption order, the Trust may first borrow XRP from the Lender using the Trade Financing Agreement, and then sell this XRP.

The Sponsor does not generally
intend to fund the Trading Balance at the Prime Broker with sufficient cash or XRP in connection with creation and redemption transactions
or to pay fees and expenses, and instead the Sponsor regularly expects to utilize the Post-Trade Financing Agreement in connection with
such creation and redemption transactions or for such fees and expenses. The purpose of borrowing the XRP or cash used in connection with
cash creation and redemption or to pay these fees and expenses from the Lender is to lock in the XRP price on the trade date or the payment
date, as applicable, rather than waiting for the funds associated with the creation to be transferred by the Cash Custodian to the XRP
Counterparty prior to purchasing the XRP or for the XRP held in the Vault Balance to be transferred to a Trading Balance prior to selling
the XRP (a process which may take up to twenty four hours, or longer if the XRP Ledger is experiencing delays in transaction confirmation,
or if there are other delays). In the event Trade Credits are unavailable from the Lender or become exhausted, the Sponsor would require
the Authorized Participant to deliver cash on the trade date so that a purchase order can be settled in a timely manner.

<div align='center'>80</div>

Because the Trust’s
Trading Balance may