Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 3

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 3
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 liabilities).

Financial firms that are
authorized to purchase Shares from or redeem Shares to the Trust (known as “Authorized Participants”) may purchase Shares
in cash by depositing cash in the Trust’s account with the Cash Custodian. This will cause the Sponsor, on behalf of the Trust,
to automatically instruct a designated third party, who is not an Authorized Participant but who may be an affiliate of an Authorized
Participant and with whom the Sponsor has entered into an agreement on behalf of the Trust (each such third party, or the Prime Broker
or the Lender, as applicable, a “XRP Counterparty”), to (i) purchase the amount of XRP equivalent in value to the cash
deposit amount associated with the order and (ii) deposit the resulting XRP amount in the Trust’s account with the Custodian,
resulting in the Transfer Agent crediting the applicable amount of Shares to the Authorized Participant. Authorized Participants may
also purchase Shares in-kind. To purchase Shares in-kind, an Authorized Participant delivers, or arranges for the delivery by the Authorized
Participant’s designated agent of, XRP to the Trust’s account with the XRP Custodian in exchange for Shares.

When such an Authorized
Participant redeems its Shares in cash, the Sponsor, on behalf of the Trust will direct the Custodian to transfer XRP to an XRP Counterparty,
who will sell the XRP to be executed, in the Sponsor’s reasonable efforts, at the Pricing Benchmark price used by the Trust to
calculate the Trust’s net asset value (“NAV”), taking into account any spread, commissions, or other trading costs
and deposit the cash proceeds of such sale in the Trust’s account with the Cash Custodian for settlement with the Authorized Participant.
Any slippage incurred (including, but not limited to, any trading fees, spreads, or commissions), on a cash equivalent basis, will be
the responsibility of the Authorized Participant and not of the Trust or Sponsor. Authorized Participants may also redeem Shares in-kind.
When such an Authorized Participant redeems Shares in-kind, the Trust, through the XRP Custodian, will deliver XRP to the Authorized
Participant, or a designated agent thereof, in exchange for its Shares.

The XRP Counterparty is
a designated third party with whom the Sponsor has entered into an agreement on behalf of the Trust that will deliver, receive or convert
to U.S. dollars the XRP related to the Authorized Participant’s cash creation or redemption orders. The Sponsor performs extensive
due diligence as part