Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 158

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 158
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 NAV per Share is identical to the calculation of NAV and NAV per Share, respectively, except that the value of XRP is determined
using the fair value of XRP based on the price in the XRP market that the Trust considers its “principal market” as of 4:00 p.m.
ET on the valuation date, rather than using the Pricing Benchmark.

The Trust has adopted a valuation
policy, which provides for the procedure for valuing the Trust’s assets. The policy also sets forth the procedures to determine
the principal market (or in the absence of a principal market, the most advantageous market) for purposes of determining the Principal
Market NAV and Principal Market NAV per Share in accordance with FASB ASC 820-10, which outlines the application of fair value accounting.
Under its valuation policy, the Trust determines its principal market (or in the absence of a principal market the most advantageous
market) annually and conducts an analysis at least on a quarterly basis to determine whether there have occurred any changes in XRP markets
and its operations that would require a change in the Sponsor’s determination of the Trust’s principal market.

The Trust identifies and determines
the XRP principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the
application of fair value measurement framework in FASB ASC 820-10. This analysis is performed from the perspective of both the
Trust and the XRP Counterparty.

ASC 820-10 determines
fair value to be the price that would be received for XRP in a current sale, which assumes an orderly transaction between market participants
on the measurement date. ASC 820-10 requires the Trust to assume that XRP is sold in its principal market to market participants
or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the
principal or most advantageous market that are independent, knowledgeable and willing and able to transact.

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Under ASC 820-10, a principal
market is the market with the greatest volume and activity level for the asset or liability. The determination of the principal market
will be based on the market with the greatest volume and level of activity that can be accessed.

The Trust receives XRP from
XRP Counterparties and may also transact on any “Digital Asset Markets”, which are defined as Exchange Markets, Brokered
Markets, Dealer Markets, and Principal-to-Principal