Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 231

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 231
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 income,
including that all such assumptions representations on which the opinion is based and all other factual information set forth in the
relevant documents, records, and instruments are true and correct, that all actions described in this offering are completed in a timely
fashion and that the Trust will at all times operate in accordance with the method of operation described in the Trust’s organizational
documents and this offering.

<div align='center'>110</div>

The opinion of Dechert LLP is not binding on the IRS or any court. Accordingly, there can be no assurance that the IRS will agree
with the conclusions herein and it is possible that the IRS or another tax authority could assert a position contrary to one or all of
those conclusions and that a court could sustain that contrary position. Neither the Sponsor nor the Trustee will request a ruling from
the IRS with respect to the classification of the Trust for U.S. federal income tax purposes or with respect to any other matter.
If the IRS were to assert successfully that the Trust is not classified as a “grantor trust,” the Trust would likely be classified
as a partnership for U.S. federal income tax purposes, which may affect the timing and other tax consequences to the Shareholders.
Under such circumstances, the Trust might be classified as a publicly traded partnership that would be taxable as a corporation for U.S. federal
income tax purposes, in which case the Trust would be taxed in the same manner as a corporation on its taxable income and distributions
to Shareholders out of the earnings and profits of the Trust would be taxed to Shareholders as ordinary dividend income. However, due
to the uncertain treatment of digital assets for U.S. federal income tax purposes, there can be no assurance in this regard. Except
as otherwise indicated, the remainder of this discussion assumes that the Trust is classified as a grantor trust for U.S. federal
income tax purposes.

Taxation of U.S. Shareholders

Each Shareholder will be treated,
for U.S. federal income tax purposes, as if it directly owned a pro rata share of the underlying assets held in the Trust. A Shareholder
also will be treated as if it directly received its respective pro rata share of the Trust’s income, if any, and as if it directly
incurred its respective pro rata share of the Trust’s expenses. In the case of a Shareholder that acquires Shares as part of the
creation of a Basket, the delivery of XRP to the Trust in exchange for a pro r