21Shares XRP ETF 10-Q

Item 1. Financial Statements (Unaudited) 21SHARES XRP ETF STATEMENTS OF ASSETS AND LIABILITIES March 31, 2026 December 31, 2025 (Unaudited) Assets Investment in XRP, at fair value (cost $ 224,608,249 , and $ 289,712,269 , respectively) $ 142,155,110 $ 247,693,539 Total assets 142,155,110 247,693,539 Liabilities Sponsor Fee payable 6,479 35,268 Total liabilities 6,479 35,268 Commitments and contingent liabilities (Note 8) Net assets $ 142,148,631 $ 247,658,271 Net assets consist of Paid-in-capital $ 241,804,488 $ 295,007,000 Accumulated earnings (loss) ( 99,655,857 ) ( 47,348,729 ) $ 142,148,631 $ 247,658,271 Shares issued and outstanding, no par value, unlimited amount authorized 10,850,000 13,890,000 Net asset value per share $ 13.10 $ 17.83 The accompanying notes are an integral part of the financial statements. 1 21SHARES XRP ETF SCHEDULES OF INVESTMENT March 31, 2026 (Unaudited) Quantity of XRP Cost Fair Value % of Net Assets Investment in XRP 105,801,659.6185 $ 224,608,249 $ 142,155,110 100.00 % Total investments 105,801,659.6185 $ 224,608,249 $ 142,155,110 100.00 % Liabilities in excess of other assets ( 6,479 ) 0.00 % Net assets $ 142,148,631 100.00 % December 31, 2025 Quantity of XRP Cost Fair Value % of Net Assets Investment in XRP 135,559,073.5077 $ 289,712,269 $ 247,693,539 100.01 % Total investments 135,559,073.5077 $ 289,712,269 $ 247,693,539 100.01 % Liabilities in excess of other assets ( 35,268 ) ( 0.01 )% Net assets $ 247,658,271 100.00 % The accompanying notes are an integral part of the financial statements. 2 21SHARES XRP ETF STATEMENTS OF OPERATIONS Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 (Unaudited) (Unaudited) Expenses Sponsor Fee $ 142,862 $ 1,558,678 Total expenses 142,862 1,558,678 Net investment loss ( 142,862 ) ( 1,558,678 ) Realized and change in unrealized gain (loss) Net realized gain on in-kind liabilities paid 16,471 – Net realized gain (loss) on investment in XRP sold to pay Sponsor Fee ( 63,157 ) 131,491 Net realized loss on investment in XRP sold for redemptions ( 11,683,909 ) – Net change in unrealized appreciation (depreciation) on investment in XRP ( 40,434,409 ) 1,375,222 Net change in unrealized gain on Sponsor Fee payable 738 84,129 Net realized and change in unrealized gain (loss) ( 52,164,266 ) 1,590,842 Net increase (decrease) in net assets resulting from operations $ ( 52,307,128 ) $ 32,164 The accompanying notes are an integral part of the financial statements. 3 21SHARES XRP ETF STATEMENTS OF CHANGES IN NET ASSETS Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 (Unaudited) (Unaudited) Net assets, beginning of period $ 247,658,271 $ 209,352,190 Contributions for Shares issued 18,937,580 – Distributions for Shares redeemed ( 72,140,092 ) – Net investment loss ( 142,862 ) ( 1,558,678 ) Net realized gain on in-kind liabilities paid 16,471 – Net realized gain (loss) on investment in XRP sold to pay Sponsor Fee ( 63,157 ) 131,491 Net realized loss on investment in XRP sold for redemptions ( 11,683,909 ) – Net change in unrealized appreciation (depreciation) on investment in XRP ( 40,434,409 ) 1,375,222 Net change in unrealized gain on Sponsor Fee payable 738 84,129 Net assets, end of period $ 142,148,631 $ 209,384,354 Shares issued and redeemed Shares issued 990,000 – Shares redeemed ( 4,030,000 ) – Net increase (decrease) in Shares issued ( 3,040,000 ) – The accompanying notes are an integral part of the financial statements. 4 21Shares XRP ETF Notes to Financial Statements ( UNAUDITED) 1. Organization The 21Shares XRP ETF (the “Trust”) is a Delaware statutory trust, formed on June 3, 2024 , pursuant to the Delaware Statutory Trust Act (“DSTA”). The Trust operates pursuant to a Third Amended and Restated Trust Agreement (the “Trust Agreement”). CSC Delaware Trust Company, a Delaware trust company, is the trustee of the Trust (the “Trustee”). The Trust is managed and controlled by 21 Shares US LLC (the “Sponsor”). The Sponsor is a limited liability company formed in the state of Delaware on June 16, 2021, and is a wholly owned subsidiary of 21co Holdings Limited. The ultimate parent company of 21co Holdings Limited is FalconX Holdings Limited (“FalconX”). Coinbase Custody Trust Company, LLC (“Coinbase”), and BitGo Bank & Trust, N.A. (“BitGo”), and Anchorage Digital Bank N.A (“Anchorage”, and, together with Coinbase and BitGo, as the context may require, the “XRP Custodians”, “Custodians”, and each a “XRP Custodian”) are the custodians for the Trust and hold all of the Trust’s XRP on the Trust’s behalf. The transfer agent (the “Transfer Agent”), the administrator for the Trust (the “Administrator”), and the cash custodian (the “Cash Custodian”), is Bank of New York Mellon. Prior to the Shares being listed on the Exchange, NAV Consulting, Inc. was the administrator of the Trust. The Trust is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”) representing fractional undivided beneficial interests in its net assets that trade on Cboe BZX Exchange, Inc. (the “Exchange”). The Shares are listed for trading on the Exchange under the ticker symbol “TOXR”. The Trust’s investment objective is to seek to track the performance of XRP, as measured by the performance of the CME CF XRP-Dollar Reference Rate—New York Variant (the “Pricing Benchmark”), adjusted for the Trust’s expenses and other liabilities. CF Benchmarks Ltd. is the administrator for the Pricing Benchmark (the “Pricing Benchmark Provider”). The Pricing Benchmark is designed to reflect the performance of XRP in U.S. dollars. In seeking to achieve its investment objective, the Trust holds XRP at its Custodians and values its Shares daily based on the Pricing Benchmark. The Trust is an “emerging growth company” as that term is used in the Securities Act, and, as such, the Trust may elect to comply with certain reduced public company reporting requirements. Ripple Markets Inc., a Delaware corporation, served as the “Seed Capital Investor” to the Trust. On December 20, 2024, Ripple Markets Inc., in its capacity as Seed Capital Investor, subject to conditions, purchased 10,000,000 Shares at a per-Share price of $ 22.07 (the “Initial Seed Shares”). Total proceeds to the Trust from the sale of the Initial Seed Shares were $ 220,676,000 . Delivery of the Initial Seed Shares was made on December 20, 2024. On December 10, 2025, the Sponsor, in its capacity as Initial Seed Creation Investor, purchased initial seed creation baskets comprising 20,000 Shares (the “Initial Seed Creation Baskets”) at a per share price of $ 20.33 . In its capacity as the Initial Seed Creation Investor, the Sponsor has acted as a statutory underwriter in connection with this purchase. Total proceeds to the Trust from the sale of the Initial Seed Creation Baskets were $ 406,658 . On December 11, 2025, the Trust purchased XRP with the proceeds of the Initial Seed Creation Baskets by transacting with an XRP Counterparty to acquire XRP on behalf of the Trust in exchange for cash provided by the Sponsor in its capacity as Initial Seed Creation Investor. All XRP acquired in connection with the Initial Seed Creation Baskets is held by one or more of the XRP Custodians. The statements of assets and liabilities and schedules of investment on March 31, 2026, and the statements of operations, and changes in net assets for the three months ended March 31, 2026 and 2025, have been prepared on behalf of the Trust and are unaudited. In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations for the three months ended March 31, 2026 and 2025, and for all interim periods presented have been made. In addition, interim period results are not necessarily indicative of results for a full-year period. The fiscal year-end of the Trust is December 31 st . 2. Significant Accounting Policies Basis of Accounting The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”). The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust uses fair value as its method of accounting for XRP in accordance with its classification as an investment company for accounting purposes. 5 Accounting Estimates The preparation of the financial statements in conformity with US GAAP requires the Trust to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from such estimates as additional information becomes available or actual amounts may become determinable. Should actual results differ from those previously recognized, the recorded estimates will be revised accordingly with the impact reflected in the operating results of the Trust in the reporting period in which they become known. Cash Cash includes non-interest bearing, non-restricted cash maintained with one financial institution that does not exceed U.S. federally insured limits. Investment Valuation US GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value investments held at fair value. 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 the fair value measurement framework in FASB ASC 820 – Fair Value Measurement. 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 obtains relevant volume and level of activity information and based on initial analysis will select an exchange market as the Trust’s principal market. The net asset value (“NAV”) and NAV per Share will be calculated using the fair value of XRP based on the price provided by this exchange market, as of 4:00 p.m. ET on the measurement date for GAAP purposes. The Trust will update its principal market analysis periodically and as needed to the extent that events have occurred, or activities have changed in a manner that could change the Sponsor’s determination of the Trust’s principal market. Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”), or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3: Unobservable inputs, including the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability at the measurement date. The following table presents information about the Trust’s assets measured at fair value as of March 31, 2026 (Unaudited) and December 31, 2025: Amount at Fair Value Measurement Using Fair Value Level 1 Level 2 Level 3 March 31, 2026 (Unaudited) Assets Investment in XRP $ 142,155,110 $ 142,155,110 $ – $ – Amount at Fair Value Measurement Using Fair Value Level 1 Level 2 Level 3 December 31, 2025 Assets Investment in XRP $ 247,693,539 $ 247,693,539 $ – $ – 6 The cost basis of the investment in XRP recorded by the Trust for financial reporting purposes is the fair value of XRP at the time of purchase. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Investment Transactions The Trust considers investment transactions to be the receipt of XRP for Share creations and the delivery of XRP for Share redemptions or for payment of expenses in XRP. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments and the net change in unrealized appreciation or depreciation on Sponsor Fee payable. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including redemption of shares and settling obligations for the Sponsor Fee and the in-kind liabilities paid in connection to the Sponsor Fee in XRP. Calculation of NAV and NAV per Share On each day other than when the Exchange is closed for regular trading (a “Business Day”), as soon as practicable after 4:00 p.m. ET, the NAV of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the XRP and other assets held by the Trust based on the Pricing Benchmark price. The Administrator computes the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding on the date the computation is made. Federal Income Taxes The Sponsor and the Trustee will treat the Trust as a “grantor trust” for U.S. federal income tax purposes. Each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and will be treated as if it directly received a pro rata portion of the Trust’s income, gain, losses and deductions. If the Trust sells XRP (for example, to pay fees or expenses), such a sale is a taxable event to shareholders of the Trust (“Shareholders”). Upon a Shareholder’s sale of its Shares, the Shareholder will be treated as having sold the pro rata share of the XRP held in the Trust at the time of the sale and recognizes gain or loss on such sale. The Sponsor has reviewed the tax positions as of March 31, 2026 and December 31, 2025, and has determined that no provision for income tax is required in the Trust’s financial statements. Segment Reporting The Trust operates in one segment. The segment derives its revenues from Trust investments made in accordance with the defined investment strategy of the Trust, as prescribed in the Trust’s prospectus. The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer of the Sponsor. The CODM monitors the operating results of the Trust. The financial information that the CODM leverages to assess the segment’s performance and to make decisions for the Trust’s single segment is consistent with the financial information that is presented within the Trust’s financial statements. Segment assets are reflected on the accompanying Statements of Assets and Liabilities as Total assets and the only significant segment expense, the Sponsor Fee, is included in the accompanying Statements of Operations. 3. Fair Value of XRP The following represents the changes in quantity and the fair value of XRP for the three months ended March 31, 2026 (Unaudited) and 2025 (Unaudited): Quantity of XRP Fair Value Beginning balance as of January 1, 2026 135,559,073.5077 $ 247,693,539 XRP purchased for contributions 9,658,968.8374 18,937,580 XRP sold for redemptions ( 39,313,882.7266 ) ( 72,140,092 ) XRP sold to pay expenses ( 102,500.0000 ) ( 155,180 ) Net realized loss on investment in XRP sold to pay Sponsor Fee – ( 63,157 ) Net realized loss on investment in XRP sold for redemptions – ( 11,683,909 ) Net change in unrealized depreciation on investment in XRP – ( 40,434,409 ) Net change in unrealized appreciation on Sponsor Fee payable 738 Ending balance as of March 31, 2026 105,801,659.6185 $ 142,155,110 Quantity of XRP Fair Value Beginning balance as of January 1, 2025 100,000,000.0000 $ 209,510,000 XRP purchased for contributions - - XRP sold for redemptions - - XRP sold to pay expenses - - Net realized gain on investment in XRP sold to pay Sponsor Fee – 131,491 Net realized loss on investment in XRP sold for redemptions - - Net change in unrealized appreciation on investment in XRP – 1,375,222 Net change in unrealized appreciation on Sponsor Fee payable – 84,129 Ending balance as of March 31, 2025 100,000,000.0000 $ 211,100,842 7 4. Trust Expenses The Trust pays the unitary Sponsor fee of 0.30 % of the Trust’s NAV (the “Sponsor Fee”). The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement. Prior to December 11, 2025, the Sponsor Fee was 2.50 %. The Sponsor Fee accrues daily and is payable in XRP weekly in arrears. The Administrator calculates the Sponsor Fee on a daily basis by applying an annualized rate to the Trust’s total XRP holdings, and the amount of XRP payable in respect of each daily accrual is determined by reference to the Pricing Benchmark. The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor Fee. The Trust incurred Sponsor Fee for the quarters ended March 31, 2026 and 2025 of $ 142,862 and $ 1,558,678 , respectively. The accrued liability as of March 31, 2026 and December 31, 2025 was $ 6,479 and $ 35,268 , respectively. As partial consideration for receipt of the Sponsor Fee, the Sponsor shall assume and pay all fees and other expenses incurred by the Trust in the ordinary course of its affairs, excluding taxes, but including (i) the fee payable to the marketing agent for services it provides to the Trust (the “Marketing Fee”), (ii) fees to the Administrator, if any, (iii) fees to the XRP Custodians, (iv) fees to the Transfer Agent, (v) fees to the Trustee, (vi) the fees and expenses related to any future listing, trading or quotation of the Shares on any listing exchange or quotation system (including legal, marketing and audit fees and expenses), (vii) ordinary course legal fees and expenses but not litigation-related expenses, (viii) audit fees, (ix) regulatory fees, including if applicable any fees relating to the registration of the Shares under the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (x) printing and mailing costs; (xi) costs of maintaining the Sponsor’s website and (xii) applicable license fees (each, a “Sponsor-paid Expense” and together, the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Additional Trust Expense will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense. There is currently no predetermined cap on the aggregate amount of Sponsor-paid expenses. Should the Trust implement a predetermined cap on aggregate Sponsor-paid expenses, the Trust will notify the owners of the beneficial interests of Shares in a prospectus supplement or in its periodic Exchange Act reports, as applicable. The Sponsor will not, however, assume certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of Shareholders, any indemnification of the Custodians, Administrator or other agents, service providers or counter-parties of the Trust, the fees and expenses related to the listing, and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively, “Additional Trust Expenses”). Of the Sponsor-paid Expenses, ordinary course legal fees and expenses shall be subject to a cap of $ 100,000 per annum. In the Sponsor’s sole discretion, all or any portion of a Sponsor-paid Expense may be re-designated as an Additional Trust Expense, if among other reasons, the Sponsor determines that a Sponsor-paid Expense is an extraordinary, non-recurring expense of the Trust. The Trust shall not be responsible for paying any fees or expenses associated with the transfer of XRP as needed to pay the Sponsor Fee or Additional Trust Expenses. To the extent that the Sponsor does not voluntarily assume expenses, they will be the responsibility of the Trust. The Sponsor also pays the costs of the Trust’s organization and offering. The Trust is not obligated to repay any such costs related to the Trust’s organization and offering paid by the Sponsor. 5. Creation and Redemption of Shares The Trust creates and redeems Shares on a continuous basis but only in one or more Creation Baskets (other than in the case of the Initial Seed Shares) consisting of 10,000 Shares or multiples thereof at the NAV on the date of the creation or redemption. Only Authorized Participants, which are registered broker-dealers who have entered into written agreements with the Sponsor and the Administrator, can place orders. For a period ending two (2) years after December 20, 2024, (the “Lock-up Period”), Ripple Markets Inc., has agreed that it will not, without the prior written consent of the Sponsor, sell, transfer, assign, pledge, hypothecate or otherwise dispose of any of the Initial Seed Shares it holds, nor will Ripple Markets Inc. seek to have the Trust or the Sponsor redeem the Initial Seed Shares during the Lock-up Period. Irrespective of whether such two (2) year Lock-up Period has elapsed or not, once the Trust is first listed on a national securities exchange, the Initial Seed Shares shall remain locked-up for a further period of six (6) months from the date of listing. Following expiration of the Lock-up Period, Ripple Markets Inc. may, to the extent permitted by applicable laws, be permitted to redeem Shares in accordance with the Trust Agreement. Authorized Participants may purchase Shares in cash by depositing cash in the Trust’s account with the Cash Custodian. This will cause the Sponsor, on behalf of the Trust, to automatically instruct a designated third party, who may be an Authorized Participant or an affiliate of an Authorized Participant, and with whom the Sponsor has entered into an agreement on behalf of the Trust (each such third party, a “XRP Counterparty”), to (i) purchase the amount of XRP equivalent in value to the cash deposit amount associated with the order and (ii) deposit the resulting XRP amount in the Trust’s accounts with the Custodians, resulting in the Transfer Agent crediting the applicable amount of Shares to an Authorized Participant. Authorized Participants may also purchase Shares in-kind. To purchase Shares in-kind, an Authorized Participant delivers or arranges for the delivery by such Authorized Participant’s designee of, XRP to the Trust’s accounts with a XRP Custodian in exchange for Shares. 8 When such an Authorized Participant redeems its Shares in cash, the Sponsor, on behalf of the Trust will direct a XRP Custodian to transfer XRP to an XRP Counterparty, who will sell the XRP to be executed, in the Sponsor’s reasonable efforts, at the Pricing Benchmark price used to calculate the Trust’s NAV, taking into account any spread, commissions, or other trading costs and deposit the cash proceeds of such sale in the Trust’s account with the Cash Custodian for settlement with the Authorized Participant. Any slippage incurred (including, but not limited to, any trading fees, spreads, or commissions), on a cash equivalent basis, will be the responsibility of the Authorized Participant and not of the Trust or Sponsor. Authorized Participants may also redeem Shares in-kind. When such an Authorized Participant redeems Shares in-kind, the Trust, through a XRP Custodian, will deliver XRP to the Authorized Participant or its designee in exchange for Shares. Three Months ended March 31, 2026 Three Months ended March 31, 2025 (Unaudited) (Unaudited) Activity in Capital Shares: Shares issued 990,000 – Shares redeemed ( 4,030,000 ) – Net Change in Capital Shares ( 3,040,000 ) – Three Months ended March 31, 2026 Three Months ended March 31, 2025 (Unaudited) (Unaudited) Activity in Capital Transactions: Contributions for shares issued $ 18,937,580 $ – Distributions for shares redeemed ( 72,140,092 ) – Net Change in Capital Transactions $ ( 53,202,512 ) $ – XRP purchased payable represents the quantity of XRP purchased for the creation of Shares where the XRP has not yet settled. Generally, XRP is transferred within two Business Days of the trade date. March 31, 2026 December 31, 2025 (Unaudited) XRP purchased payable $ – $ – XRP sold receivable represents the quantity of XRP sold for the redemption of Shares where the XRP has not yet been settled. Generally, XRP is transferred within two Business Days of the trade date. March 31, 2026 December 31, 2025 (Unaudited) XRP sold receivable $ – $ – 6. Related Parties The Sponsor is a related party to the Trust. The Trust’s operations are supported by its Sponsor, who is in turn supported by its parent company and affiliated companies and external service providers. As of March 31, 2026 and December 31, 2025, the Sponsor owned 20,000 Shares of the Trust. The Sponsor arranged for the creation of the Trust and is responsible for the ongoing registration of the Shares for their public offering in the United States and the listing of Shares on the Exchange. 9 7. Financial Highlights Per Share Performance (for a Share outstanding throughout the periods presented) Three Months ended March 31, 2026 Three Months ended March 31, 2025 (Unaudited) (Unaudited) Net asset value per Share, beginning of period $ 17.83 $ 20.94 Net investment income (loss) on investment in XRP (1) ( 0.01 ) ( 0.16 ) Net realized and change in unrealized gain(loss) on investment in XRP (2) ( 4.72 ) 0.20 Net change in net assets from operations ( 4.73 ) 0.04 Net asset value per Share, end of period $ 13.10 $ 20.98 Total return, at net asset value (3) ( 26.53 )% 0.19 % Ratio to average net assets (4) Net investment income (loss) ( 0.30 )% ( 2.50 )% Gross expenses 0.30 % 2.50 % Net expenses 0.30 % 2.50 % (1) Calculated using average Shares outstanding method. (2) The amount shown for a Share outstanding throughout the period may not agree with the change in the aggregate gains and losses for such period because of the timing of sales and repurchases of the Trust’s Shares in relation to fluctuating market value for the Trust. (3) Total return is calculated based on the change in the value during the period and is not annualized. An individual shareholder’s total return and ratio may vary from the above total returns and ratios based on the timing of contributions to and withdrawals from the Trust. (4) Annualized. 8. Commitments and Contingent Liabilities In the normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet occurred and cannot be predicted with any certainty. However, the Sponsor believes the risk of loss under these arrangements to be remote. 9. Concentration Risk Unlike other funds that may invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class. This concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with XRP and digital assets. By concentrating its investment strategy solely in XRP, any losses suffered as a result of a decrease in the value of XRP can be expected to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets that were diversified. 10 10. Indemnification The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any XRP or other assets of the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates, and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Trust Agreement without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft, or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Trust Agreement. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Trust Agreement. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Trust Agreement. The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Trust Agreement or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Trust Agreement or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. 11. Subsequent Events On April 17, 2026, the Initial Seed Creation Baskets, comprising of 20,000 shares, purchased by the Sponsor on December 10, 2025, were redeemed. The Trust has evaluated all subsequent events and transactions for potential recognition or disclosure through the issuance of the financial statements and has noted no other events requiring adjustment or additional disclosure in the financial statements. 11