Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 191

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 191
---
 connection with spot
digital asset exchange-traded products. As part of the same set of Frequently Asked Questions (“FAQs”) clarifying its views
on broker-dealers’ digital asset activities, the staff noted, among other things, that (i) SEC Rule 15c3-3 applies only to those
digital assets that were securities, and (ii) broker-dealers are permitted to facilitate in-kind creations and redemptions in connection
with spot digital asset exchange-traded products. To become an Authorized Participant, a person must enter into an Authorized Participant
Agreement with the Sponsor. The Authorized Participant Agreement provides the procedures for the creation and redemption of Baskets and
for the delivery of the XRP required for such creation and redemptions. The Authorized Participant Agreement and the related procedures
attached thereto may be amended by the Trust, without the consent of any Shareholder or Authorized Participant. Authorized Participants
pay the Transfer Agent a fee for each order they place to create or redeem one or more Baskets. The transaction fee may be reduced, increased
or otherwise changed by the Sponsor.

Authorized Participants will
deliver cash or XRP to create Shares and will (either directly, or through their designated agents) receive cash or XRP when redeeming
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 creation or redemption order. The Trust will create Shares
by receiving XRP from an XRP Counterparty that is not the Authorized Participant, and the Trust — not the Authorized
Participant — is responsible for selecting the XRP Counterparty to deliver the XRP. Further, the XRP Counterparty
will not be acting as an agent of the Authorized Participant with respect to the delivery of the XRP to the Trust or acting at the direction
of the Authorized Participant with respect to the delivery of the XRP to the Trust. The XRP Counterparty is not contractually obligated
to participate in cash orders for creations.

The Trust will redeem Shares
by delivering XRP to an XRP Counterparty that is not the Authorized Participant and the Trust — not the Authorized Participant — is
responsible for selecting the XRP Counterparty to receive the XRP. Further, the XRP Counterparty will not be acting as an agent
of the Authorized Participant with respect to the receipt of the XRP from the Trust