Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 227

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 227
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 of Dechert LLP, although not free from doubt due to the lack of directly governing authority, the Trust should be classified
as a “grantor trust” for U.S. federal income tax purposes (and the following discussion assumes such classification). In
the opinion of Dechert LLP, although not free from doubt due to the lack of directly governing authority, the Trust should be classified
as a “grantor trust” for U.S. federal income tax purposes (and the following discussion assumes such classification).
The Trust intends to operate so that it will qualify to be treated for U.S. federal income tax purposes as a grantor trust. Because the
treatment of staking in a grantor trust is still developing, there remains a risk of adverse regulatory or legal determinations that
could affect the tax treatment of the Trust as a grantor trust or affect the Trust’s operations. The opinion of Dechert LLP is
based on various assumptions and representations relating to the Trust’s organization, operation, assets, activities, and income,
including that all such assumptions representations on which the opinion is based and all other factual information set forth in the
relevant documents, records, and instruments are true and correct, that all actions described in this offering are completed in a timely
fashion and that the Trust will at all times operate in accordance with the method of operation described in the Trust’s organizational
documents and this offering.

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The opinion of Dechert LLP is not binding on the IRS or any court. Accordingly, there can be no assurance that the IRS will agree
with the conclusions herein and it is possible that the IRS or another tax authority could assert a position contrary to one or all of
those conclusions and that a court could sustain that contrary position. Neither the Sponsor nor the Trustee will request a ruling from
the IRS with respect to the classification of the Trust for U.S. federal income tax purposes or with respect to any other matter.
If the IRS were to assert successfully that the Trust is not classified as a “grantor trust,” the Trust would likely be classified
as a partnership for U.S. federal income tax purposes, which may affect the timing and other tax consequences to the Shareholders.
Under such circumstances, the Trust might be classified as a publicly traded partnership that would be taxable as a corporation for U.S. federal
income tax purposes, in which case the Trust would be taxed in the same manner as a corporation on its taxable income and distributions
to