Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 147

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 147
---
). The ultimate
parent company of 21co Holdings Limited is FalconX, a leading institutional digital asset prime brokerage.

The Sponsor believes that
the Trust will provide a cost-efficient way for Shareholders to implement strategic and tactical asset allocation strategies that use
XRP by investing in the Trust’s Shares rather than purchasing, holding and trading XRP directly. The latter alternative would require
selecting an XRP spot market and opening an account or arranging a private transaction, establishing a personal computer system capable
of transacting directly on the blockchain, and incurring the risk associated with maintaining and protecting a private key that is irrecoverable
if lost, among other difficulties.

Use of the CME CF XRP—Dollar Reference Rate — New York Variant (XRPUSD_NY)

The net assets of the Trust
and its Shares are valued on a daily basis with reference to the CME CF XRP—Dollar Reference Rate — New York
Variant (XRPUSD_NY), the Pricing Benchmark, a standardized reference rate published by CF Benchmarks Ltd., the Benchmark Provider, that
is designed to track the performance of XRP in U.S. dollars. The Pricing Benchmark is calculated daily and aggregates the notional
value of XRP trading activity across major XRP spot exchanges. The Benchmark Provider is the administrator of the Pricing Benchmark.
The Trust also uses the Pricing Benchmark to calculate its NAV, which is the aggregate U.S. Dollar value of XRP in the Trust, based
on the Pricing Benchmark, less its liabilities and expenses. “NAV per Share” is calculated by dividing NAV by the number
of Shares currently outstanding. NAV and NAV per Share are not measures calculated in accordance with GAAP. NAV is not intended
to be a substitute for the Trust’s Principal Market NAV calculated in accordance with GAAP, and NAV per Share is not intended to
be a substitute for the Trust’s Principal Market NAV per Share calculated in accordance with GAAP.

The Pricing Benchmark was
created to facilitate financial products based on XRP and provides a USD-denominated reference rate for the spot price of XRP. The
Pricing Benchmark leverages real-time prices from multiple constituent exchanges (the “Constituent Exchanges”) to provide
a representative spot price. Each Constituent Exchange is weighted proportionally to its trailing 24-hour liquidity with adjustments
for price variance and inactivity. The Pricing Benchmark is calculated based on the Relevant Transactions of the Constituent Exchanges.
Calculation steps on any given day for which the