Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 110

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 110
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 definition of being offered or sold as a security under U.S. 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.

There is a lack of consensus regarding the regulation of digital assets, including XRP.

Regulation of digital assets
continues to evolve across different jurisdictions worldwide, which may cause uncertainty and insecurity as to the legal and tax status
of a given digital asset. As XRP and 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, OCC, CFTC, FINRA, the Consumer Financial Protection Bureau (“CFPB”),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, state financial institution
regulators, and others) have been examining the operations of digital asset networks, digital asset users and the digital asset spot
market. Many of these state and federal agencies have brought enforcement actions and issued advisories and rules relating to digital
asset markets. Ongoing and future regulatory actions with respect to digital assets generally or any single digital asset in particular
may alter, perhaps to a materially adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue
to operate.

For example, certain events
in 2022, 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.
Federal and state legislatures and regulatory agencies may introduce and enact new laws and regulations to regulate digital asset intermediaries,
such as digital asset exchanges and custodians. The March 2023 collapses of Silicon Valley Bank