Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 9

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 9
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 conventional investments
like stocks and bonds. Stocks represent ownership in a company, entitling shareholders to a portion of the company’s profits. Bonds
are debt instruments issued by corporations or governments, where the bondholder is a creditor to the issuer that is generally entitled
to a stream of income payments. Ownership of stocks and bonds is typically recorded through a centralized system managed by brokers,
custodians or clearinghouses. Ownership of XRP does not entitle its holders to any portion of a company’s profits or any stream
of income payments. XRP is a digital asset and ownership of it is reflected on a distributed ledger. Additionally, XRP is not offered
or sold as a security, and is thus not subject to the protections of the U.S. federal securities laws.

The Trust does not provide
investors with direct exposure to XRP, and an investment in the Trust is not a direct investment in XRP. Rather, the Trust provides
investors with the opportunity to indirectly access the market for XRP through a traditional brokerage account without the potential barriers
to entry or risks involved with holding or transferring XRP directly or acquiring it from an XRP spot market.

The Trust will custody its
XRP at a regulated third-party custodian, Coinbase Custody Trust Company, LLC (the “XRP Custodian”). The XRP Custodian is
chartered as a New York state limited liability trust company that provides custody and trade execution services for digital assets.
The XRP Custodian is not Federal Deposit Insurance Corporation (“FDIC”)-insured but carries insurance provided by private
insurance carriers. The Trust, the Sponsor and the service providers will not loan or pledge the Trust’s assets, nor will the Trust’s
assets serve as collateral for any loan or similar arrangement, other than in connection with the Post-Trade Financing Agreement. The
Trust will not invest in derivatives. The Sponsor believes that the Shares are designed to provide investors with a cost-effective and
convenient way to invest in XRP without purchasing, holding and trading XRP directly.

The amount of XRP represented
by the Shares is expected to decline over time because of the transfer of the Trust’s XRP to pay the Sponsor Fee and other liabilities,
regardless of whether the trading prices of the Shares rise or fall.

XRP and the XRP Ledger

XRP is a digital asset that
is created and transmitted through the operations of the XRP Ledger, a distributed ledger upon which XRP transactions are processed and
settled.