Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 50

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 50
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 to zero. XRP has not been in existence long
enough for market participants to assess these predictions with any precision, but if these observers are even partially correct, an investment
in the Shares may turn out to be substantially worthless.

A decline in the adoption of XRP could negatively impact the Trust.

The Sponsor will not have any
strategy relating to the development of XRP and the XRP Ledger. However, a lack of expansion in usage of XRP and the XRP Ledger could
adversely affect an investment in Shares.

The further development and
acceptance of the XRP Ledger, which is part of a new and rapidly changing industry, is subject to a variety of factors that are difficult
to evaluate. The slowing, stopping or reversing of the development or acceptance or usage of the XRP Ledger may adversely affect the price
of XRP and therefore an investment in the Shares. The further adoption of XRP will require growth in its usage and in the XRP Ledger.
Adoption of XRP will also require an accommodating regulatory environment.

The use of digital assets such
as XRP to, among other things, buy and sell goods or services or facilitate cross-border payments, is part of a new and rapidly evolving
industry that employs digital assets based upon computer-generated mathematical and/or cryptographic protocols. The XRP Ledger is a prominent,
but not unique, part of this industry. The growth of this industry is subject to a high degree of uncertainty, as new assets and technological
innovations continue to develop and evolve. Currently, there is relatively limited use of XRP in the retail and commercial marketplace
in comparison to relatively extensive use as a store of value, thus contributing to price volatility that could adversely affect an investment
in the Shares. However, XRP may not be suited for a number of commercial uses, including those requiring real time payments, partially
due to the amount of time that XRP transactions may potentially require in order to clear. This could result in decreasing usage of the
network, to the extent that XRP does not otherwise become a store of asset value or meet the needs of another commercial use.

Today, there is limited use
of XRP in the retail, commercial, or payments spaces, and, on a relative basis, speculators make up a significant portion of users. Certain
merchants and major retail and commercial businesses have only recently begun accepting XRP and the XRP Ledger as a means of payment for
goods and services. This pattern may contribute to outsized