Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 28

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 28
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 Risks Associated with XRP and the XRP Ledger

| ● | The value of                                                                               
 the Shares relates directly to the price of XRP, the value of which may be highly volatile 
 and subject to fluctuations due to a number of factors.                                    |

| ● | XRP is                                                                      
 a relatively new technological innovation with a limited operating history. |

| ● | The Trust                                                                                     
 will not directly or indirectly participate in any staking program, and accordingly investors 
 will not receive any staking rewards or other income.                                         |

| ● | The fixed                                                            
 supply of XRP may negatively impact the operation of the XRP Ledger. |

| ● | The significant                                                                          
 holdings of XRP by Ripple Labs and other early stakeholders could have an adverse effect 
 on the market price of XRP.                                                              |

| ● | A determination                                                                                 
 that XRP or any other digital asset is a “security” may adversely affect the                    
 price of XRP and the value of the Shares, and result in potentially extraordinary, nonrecurring 
 expenses to, or termination of, the Trust.                                                      |

| ● | The trading                                                                                    
 prices of many digital assets, including XRP, have experienced extreme volatility in recent    
 periods and may continue to do so. Extreme volatility in the future, including further decline 
 in the trading prices of XRP, could have a material adverse effect on the value of the Shares  
 and the Shares could lose all or substantially all of their value.                             |

| ● | Spot markets                                                    
 on which XRP trades are relatively new and largely unregulated. |

| ● | The use                                                                                           
 of cash creations and redemptions, as opposed to in-kind creations and redemptions, may adversely 
 affect the arbitrage transactions by Authorized Participants intended to keep the price of        
 the Shares closely linked to the price of XRP and, as a result, the price of the Shares may       
 fall or otherwise diverge from NAV.                                                               |

| ● | If the                                                                                     
 process of creation and redemption of Baskets encounters any unanticipated difficulties,   
 the possibility for arbitrage transactions by Authorized Participants intended to keep the 
 price of the Shares closely linked to the price of XRP may not exist and, as a result, the 
 price of the Shares may fall or otherwise diverge from NAV.                                |

| ● | Authorized                                                                         
 Participants may act in the same or similar capacity for other competing products. |

| ● | Spot markets                                                                                        
 may be exposed to security breaches, fraud and market