Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 228

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 228
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 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 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 De