Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 146

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 146
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 Reuters. The IIV may differ from the NAV
due to the differences in the time window of trades used to calculate each price (the NAV uses a sixty-minute window, whereas the IIV
draws prices from the last trade on each exchange in an effort
to produce a relevant, real-time price). The Sponsor does not believe this will cause confusion in the marketplace, as Authorized Participants
are the only Shareholders who interact with the NAV and the Sponsor will communicate its NAV calculation methodology clearly.

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Dissemination of the IIV
provides additional information that is not otherwise available to the public and is useful to Shareholders and market professionals in
connection with the trading of the Trust’s Shares on the Exchange. Shareholders and market professionals will be able throughout
the trading day to compare the market price of the Trust and the IIV. If the market price of the Trust’s Shares
diverges significantly from the IIV, market professionals will have an incentive to execute arbitrage trades. For example, if the
Trust appears to be trading at a discount compared to the IIV, a market professional could buy the Trust’s Shares on the Exchange
and sell short futures contracts. Such arbitrage trades can tighten the tracking between the market price of the Trust and the IIV
and thus can be beneficial to all market participants. Dissemination of the IIV provides additional information that is not otherwise
available to the public and is useful to Shareholders and market professionals in connection with the trading of the Trust’s Shares
on the Exchange. Shareholders and market professionals will be able throughout the trading day to compare the market price of
the Trust and the IIV. If the market price of the Trust’s Shares diverges significantly from the IIV, market professionals
will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared to the IIV,
a market professional could buy the Trust’s Shares on the Exchange and sell short futures contracts. Such arbitrage trades can tighten
the tracking between the market price of the Trust and the IIV 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