Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 226

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 226
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 U.S. federal income tax purposes, persons whose “functional
currency” is not the U.S. dollar, persons required for U.S. federal income tax purposes to accelerate the recognition
of any item of gross income with respect to the Shares as a result of such income being recognized on an applicable financial statement,
or persons subject to the federal alternative minimum tax. Moreover, the discussion below does not address the effect of any state, local
or foreign tax law consequences that may apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers
with respect to all federal, state, local and foreign tax law considerations potentially applicable to their investment in Shares.

For purposes of this discussion,
a “U.S. Shareholder” is a Shareholder that is:

| ● | an individual                                                                        
 who is treated as a citizen or resident of the United States for U.S. federal income 
 tax purposes;                                                                        |

| ● | a corporation                                                                          
 (or entity treated as a corporation for U.S. federal income tax purposes) created or   
 organized in or under the laws of the United States, any state thereof or the District 
 of Columbia;                                                                           |

| ● | an estate,                                                                             
 the income of which is includible in gross income for U.S. federal income tax purposes 
 regardless of its source; or                                                           |

| ● | a trust,                                                                             
 if a court within the United States is able to exercise primary supervision over the 
 administration of the trust and one or more United States persons have the authority 
 to control all substantial decisions of the trust.                                   |

If a partnership or other
entity or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment of a partner
generally depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding
Shares, the discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income tax
implications of the purchase, ownership and disposition of such Shares.

Taxation of the Trust

The Sponsor and the Trustee
will treat the Trust as a “grantor trust” for U.S. federal income tax purposes.

As a grantor trust, the
Trust can undertake only certain types of activities. For example, generally, the Trust cannot vary its investment portfolio to
take advantage of market fluctuations. The Trust may receive income from investment activities that do not require such decision-making. In
the opinion