Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 192

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 192
---
 operations of the Trust, and this may allow them to act in a way that furthers their own interests which
may create a conflict with shareholders’ best interests. Shareholders have very limited voting rights, which limits their ability
to influence matters such as amendment of the Trust Agreement, change in the Trust’s basic investment policy, dissolution of the
Trust, or the sale or distribution of the Trust’s assets.

The Sponsor serves as the sponsor
to the Trust. The Sponsor may have a conflict to the extent that its trading decisions for the Trust may be influenced by the effect they
would have on other funds its affiliates may manage. In addition, the Sponsor may be required to indemnify its officers, directors and
key employees with respect to their activities on behalf of other funds, if the need for indemnification arises. This potential indemnification
could cause the Sponsor’s assets to decrease. If the Sponsor’s other sources of income are not sufficient to compensate for
the indemnification, it could cease operations, which could in turn result in Trust losses and/or termination of the Trust.

The Sponsor has an affiliate,
21Shares AG, that issues various exchange traded products providing exposure to certain digital assets in non-U.S. jurisdictions.
In addition, the Sponsor’s affiliate(s) may take management fees in-kind in XRP, and as such, may engage in trading of the
underlying asset across affiliates. The Sponsor has adopted and implemented policies and procedures that are reasonably designed to ensure
compliance with applicable law, including a Code of Ethics providing guidance on conflicts of interest (collectively, the “Policies”).
As of the effectiveness of the Registration Statement, the Sponsor’s Policies are in place and require that the Sponsor eliminate,
mitigate, or otherwise disclose conflicts of interest. Additionally, the Sponsor has adopted policies and procedures requiring that certain
applicable personnel pre-clear personal trading activity in which XRP is the referenced asset. The Sponsor has also implemented an Information
Barrier Policy restricting certain applicable personnel from obtaining sensitive information. The Sponsor believes that these controls
are reasonably designed to mitigate the risk of conflicts of interest and other impermissible activity.

Furthermore, the Sponsor or
its affiliates may participate in transactions related to XRP, either for their own account or for account of a client. Such transactions
may not serve to benefit the shareholders of the Trust and may have a positive or negative effect on the value of the XRP held by the
Trust and, consequently, on the market value of XRP. In addition, the Sponsor