Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 119

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 119
---
 relating to fraud and manipulation involving XRP and XRP
markets. Beyond instances of fraud or manipulation, the CFTC generally would not oversee cash or spot market exchanges or transactions
involving XRP that do not use collateral, leverage, or financing.

Various foreign jurisdictions
have adopted, and may continue to adopt in the near future, laws, regulations or directives that affect XRP, particularly with respect
to XRP spot markets, trading venues and service providers that fall within such jurisdictions’ regulatory scope. Countries may,
in the future, explicitly restrict, outlaw or curtail the acquisition, use, trade or redemption of XRP. Such laws, regulations or
directives may conflict with those of the United States and may negatively impact the acceptance of XRP by users, merchants and
service providers outside the United States and may therefore impede the growth or sustainability of the XRP economy in these jurisdictions
as well as in the United States and elsewhere, or otherwise negatively affect the value of XRP, and, in turn, the value of the Shares.

Any change in regulation in
any particular jurisdiction may impact the supply and demand of that specific jurisdiction and other jurisdictions due to the global
network of exchanges for XRP, as well as composite prices used to calculate the underlying value of the Trust’s XRP, as such data
sources span multiple jurisdictions.

Future legal or regulatory developments may negatively affect the value of XRP or require the Trust or the Sponsor to become registered with the SEC or CFTC, which may cause the Trust to incur unforeseen expenses or liquidate.

Current and future legislation,
SEC and CFTC rulemaking, and other regulatory developments may impact the manner in which XRP are treated for classification and clearing
purposes. In particular, although XRP is currently understood to be a commodity when transacted on a spot basis, XRP itself in the future
might be classified by the CFTC as a “commodity interest” under the CEA, subjecting all transactions in XRP to full CFTC
regulatory jurisdiction. Alternatively, in the future XRP might be classified by the SEC or one or more federal courts as being offered
and sold as a “security” under U.S. federal securities laws. In the face of such developments, the required registrations
and compliance steps may result in extraordinary, nonrecurring expenses to the Trust. In particular, the Trust may be required to rapidly
unwind its entire position in XRP at potentially unfavorable prices and potentially