Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 143

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 143
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. federal securities laws, the Trust and the
Sponsor may be subject to additional requirements under the Investment Company Act and the Advisers Act. The Sponsor or the Trust may
be required to register as an investment adviser under the Advisers Act. Such additional registration may result in extraordinary, recurring
and/or non-recurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the Trust determines
not to comply with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination
could result in the liquidation of the Trust’s XRP at a time that is disadvantageous to Shareholders.

Regulation of Digital Assets in General

As digital assets have grown
in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN, SEC,
CFTC, FINRA, the Consumer Financial Protection Bureau (“CFPB”), the Department of Justice, the Department of Homeland Security,
the Federal Bureau of Investigation, the IRS and state financial institution regulators) have been examining the operations of digital
asset networks, digital asset users and the digital asset spot markets, with particular focus on the extent to which digital assets can
be used to launder the proceeds of illegal activities or fund criminal or terrorist enterprises and the safety and soundness of spot
markets or other service-providers that hold digital assets for users. Many of these state and federal agencies have issued consumer
advisories regarding the risks posed by digital assets to investors.

Recent events, including among
others the bankruptcy filings of FTX and its subsidiaries, Three Arrows Capital, Celsius Network, Voyager Digital, Genesis, BlockFi and
others, and other developments in the digital asset markets, have resulted in calls for heightened scrutiny and regulation of the digital
asset industry, with a specific focus on intermediaries such as digital asset exchanges, platforms, and custodians.

In addition, federal and state
agencies, and other countries have issued rules or guidance about the treatment of digital asset transactions or requirements for businesses
engaged in digital asset activity. President Trump’s January 23, 2025 Executive Order, titled “Strengthening American Leadership
in Digital Financial Technology”, aimed to reorient the federal governments approach to digital assets. The Executive Order emphasized
the importance of the digital asset industry in innovation and economic development, and outlined policies to support the growth and
use of digital assets, blockchain technology and related technologies. President Trump’s order also