Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 118

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 118
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-governmental agencies could have an adverse effect on an investment in the Trust.

The regulation of XRP and
related products and services continues to evolve, may take many different forms and will, therefore, impact XRP and its usage in a variety
of manners. The inconsistent, unpredictable, and sometimes conflicting regulatory landscape may make it more difficult for XRP businesses
to provide services, which may impede the growth of the XRP economy and have an adverse effect on consumer adoption of XRP. There
is a possibility of future regulatory change altering, perhaps to a material extent, the nature of an investment in the Trust or the
ability of the Trust to continue to operate. Additionally, changes to current regulatory determinations of XRP’s status as not
being offered or sold as a security, changes to regulations surrounding digital asset futures or derivatives or other related products,
or actions by a United States or foreign government or quasi-governmental agencies exerting regulatory authority over XRP, the XRP
Ledger, XRP trading, or related activities impacting other parts of the digital asset market, may adversely impact XRP and therefore
may have an adverse effect on the value of your investment in the Trust.

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A number of jurisdictions
worldwide have adopted prohibitions or restrictions on XRP trading and other activity relating to virtual currencies and digital assets,
which could negatively affect XRP prices or demand. For instance, some observers believe that Chinese governmental regulatory actions
regarding digital asset mining and trading activity were one factor that contributed to the drawdowns in global XRP prices in May 2021.

The legal status of XRP and
other digital assets varies substantially from country to country. In many countries, the legal status of XRP is still undefined or changing.
Some countries have deemed the usage of certain digital assets illegal. Other countries have banned digital assets or securities or derivatives
in respect to them (including for certain categories of investors), banned the local banks from working with digital assets or have restricted
digital assets in other ways. For example, XRP and other digital assets currently face an uncertain regulatory landscape in many foreign
jurisdictions, such as the European Union, China, the United Kingdom, Australia, Russia, Israel, Poland, India and Canada. In some countries,
such as the United States, different government agencies define digital assets differently, leading to further regulatory conflict
and uncertainty.

In addition, cybersecurity
attacks by state actors, particularly for the purpose of evading international economic