Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 157

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 157
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 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 Markets, each as defined in ASC 820-10-35-36A.

In determining which of the
eligible Digital Asset Markets is the Trust’s principal market, the Trust obtains reliable volume and level of activity information
and reviews these criteria in the following order:

First, the Trust reviews a
list of Digital Asset Markets and scopes in the markets that the Trust reasonably believes are operating in compliance with applicable
laws and regulations and those that are accessible to the Trust and the Authorized Participant.

Second, the Trust sorts the
remaining Digital Asset Markets from high to low based on volume and level of activity of XRP traded on