Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 216

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 216
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 of the Shares,
and (b) the Shareholder’s tax basis for the pro rata share of the XRP held in the Trust at the time of sale that is attributable
to the Shares sold, as determined in the manner described in the preceding paragraph. Based on current IRS guidance, such gain or loss
(as well as any gain or loss realized by a Shareholder on account of the Trust selling XRP) will generally be long-term capital gain or
loss if the Shareholder has a holding period of greater than one year in its pro rata share of the XRP that was sold and otherwise will
be short-term capital gain or loss.

<div align='center'>108</div>

The Trust’s sales
of XRP to fund cash redemptions are expected to result in gains or losses with such gains or losses expected to be treated as incurred
by the Shareholder that is being redeemed. These gains or losses generally would equal the difference between the amount realized from
the sale of the XRP and the Shareholder’s tax basis for the portion of the Shareholder’s pro rata share of the XRP held in
the Trust that is sold to fund the redemption, as determined in the manner described above. A redemption of some or all of a Shareholder’s
Shares in exchange for the cash received from such sale is not expected to be treated as a separate taxable event for the Shareholder.

An in-kind redemption of
some or all of a Shareholder’s Shares in exchange for the underlying XRP represented by the Shares redeemed generally will not
be a taxable event to the Shareholder. The Shareholder’s tax basis for the XRP received in the redemption generally will be the
same as the Shareholder’s tax basis for the pro rata share of the XRP held in the Trust immediately prior to the redemption that
is attributable to the Shares redeemed. The Shareholder’s holding period for the XRP received generally will include the period
during which the Shareholder held the Shares being redeemed. A subsequent sale of the XRP received the Shareholder generally will be
a taxable event.

After any sale or redemption
of less than all of a Shareholder’s Shares, the Shareholder’s tax basis for its pro rata share of the XRP held in the Trust
immediately after such sale or redemption generally will be equal to its tax basis in its share of the total amount of the XRP held in
the Trust immediately prior to the sale or redemption, less the portion of such