Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 51

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 51
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 price volatility, which in turn can make XRP less attractive to merchants
and commercial parties as a means of payment. A lack of expansion by XRP into retail and commercial markets or a contraction of such use
may result in a reduction in the price of XRP, which could adversely affect an investment in the Trust.

In addition, there is no assurance
that XRP will maintain its value over the long-term. The value of XRP is subject to risks related to its usage. Even if growth in XRP
adoption occurs in the near or medium-term, there is no assurance that XRP usage will continue to grow over the long-term. A contraction
in use of XRP may result in increased volatility or a reduction in the price of XRP, which would adversely impact the value of Shares.

The failure or poor performance of, or perceptions of risk or negative publicity around one or more of the protocols based on the XRP Ledger or that make use of XRP may adversely affect demand for XRP, the price of XRP, or the price of the Shares.

Several decentralized protocols
or decentralized applications operate on the XRP Ledger or use XRP. These may include decentralized exchanges, lending or borrowing protocols,
or liquid staking protocols, among others. The failure, poor performance of, any errors in the functioning of these protocols, or other
negative events associated with these protocols may result in negative publicity and may limit the adoption of XRP, resulting in adverse
consequences for the demand for XRP, the Trust and the Shares.

Irrevocable nature of blockchain-recorded transactions.

XRP transactions recorded
on the XRP Ledger are not, from an administrative perspective, reversible without the consent and active participation of the recipient
of the transaction or, in theory, control or consent of a majority of the XRP Ledger’s aggregate hash rate. Once a transaction
has been verified and recorded in a block that is added to the blockchain, an incorrect transfer of XRP or a theft of XRP generally will
not be reversible, and the Trust may not be capable of seeking compensation for any such transfer or theft. Although the Trust’s
transfers of XRP will regularly be made to or from the Trust’s accounts at the XRP Custodian, it is possible that, through computer
or human error, or through theft or criminal action, the Trust’s XRP could be transferred from the Trust’s account at the
XRP Custodian in incorrect amounts or to unauthorized third parties, or