Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 91

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 91
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 to use futures to hedge their exposure, note that as of the date of this Prospectus, XRP futures and options
trading does not occur on exchanges in the U.S. regulated by the CFTC. The liquidity of the market will depend on, among other things,
the adoption of XRP and the commercial and speculative interest in the market.

Arbitrage transactions intended to keep the price of Shares closely linked to the price of XRP may be problematic if the process for the creation and redemption of Baskets encounters difficulties, which may adversely affect an investment in the Shares.

If the processes of creation
and redemption of the Shares encounter any unanticipated difficulties, potential market participants who would otherwise be willing to
purchase or redeem Baskets to take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and
the price of the underlying XRP may not take the risk that, as a result of those difficulties, they may not be able to realize the profit
they expect. If this is the case, the liquidity of Shares may decline and the price of the Shares may fluctuate independently of the price
of XRP and may fall.

Security threats and cyber-attacks could result in the halting of Trust operations and a loss of Trust assets or damage to the reputation of the Trust, each of which could result in a reduction in the price of the Shares.

Security breaches, cyber-attacks,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. Multiple thefts of XRP and
other digital assets from other holders have occurred in the past. Because of the decentralized process for transferring XRP, thefts can
be difficult to trace, which may make XRP a particularly attractive target for theft. Cyber security failures or breaches of one or more
of the Trust’s service providers (including but not limited to, the Benchmark Provider, the Transfer Agent, the Administrator, or
the XRP Custodian) have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, violations
of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or
additional compliance costs.

The Trust and its service providers’
use of internet, technology and information systems (including mobile devices and cloud-based service offerings) may expose the Trust
to potential risks linked to cyber-security breaches of those technological or information systems. Security breaches, computer malware,
ransomware and computer hacking attacks have been a prevalent concern in relation