Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 246

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 246
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 is to seek to track the performance of XRP, as measured by the performance of the CME CF XRP-Dollar Reference Rate—New
York Variant (the “Index”), adjusted for the Trust’s expenses and other liabilities. CF Benchmarks Ltd. is the administrator
for the Index (the “Index Provider”). The Index is designed to reflect the performance of XRP in U.S. dollars. In seeking
to achieve its investment objective, the Trust holds XRP at its Custodian and values its Shares daily based on the Index.

| 2. | Significant Accounting Policies |

Basis of Accounting

The financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”).
The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting
and reporting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company
under the Investment Company Act of 1940, as amended. The Trust uses fair value as its method of accounting in accordance with its classification
as an investment company for accounting purposes.

Accounting Estimates

The preparation of the financial
statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results may differ materially from such estimates as additional information becomes available or actual amounts may become determinable.
Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected
in the operating results of the Trust in the reporting period in which they become known.

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21Shares XRP ETF

Notes to the financial statements

(Expressed in United States Dollars)

| 2. | Significant Accounting Policies (CONTINUED) |

Fair Value – Definition and Hierarchy

US GAAP defines fair value as
the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants
at the measurement date. The Trust’s policy is to value investments held at fair value.

The Trust identifies and
determines the XRP principal market (or in the absence of a principal market, the most advantageous market) for GAAP