Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 146

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 146
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C may have regulatory
jurisdiction over XRP derivatives markets, if these were to develop in the U.S. In addition, if the CFTC determines that XRP is a “commodity”
under the CEA and the rules thereunder, it may have jurisdiction to prosecute fraud and manipulation in the cash, or spot, market for
XRP. The CFTC may pursue enforcement actions relating to fraud and manipulation involving XRP and XRP markets. Beyond instances of fraud
or manipulation, the CFTC generally would not oversee cash or spot market exchanges or transactions involving XRP that do not use collateral,
leverage, or financing.

Various foreign jurisdictions
have, and may continue to, in the near future, adopt laws, regulations or directives that affect the XRP network, the XRP markets, and
their users, particularly XRP spot markets and service providers that fall within such jurisdictions’ regulatory scope. Foreign
jurisdictions including Canada, Germany, Sweden and Switzerland have also approved exchange-traded XRP products.

The effect of any future regulatory
change on the Trust or XRP is impossible to predict, but such change could be substantial and adverse to the Trust and the value of the
Shares.

<div align='center'>66

THE TRUST AND XRP PRICES</div>

Overview of the Trust

The Trust is an exchange-traded
fund that issues Shares that trade on the Exchange. The Trust’s investment objective is to track the performance of XRP, as measured
by the performance of the Pricing Benchmark, adjusted for the Trust’s expenses and liabilities. In seeking to achieve its investment
objective, the Trust will hold XRP and will value its Shares daily based on the XRP price reported by the Pricing Benchmark. The Trust
is sponsored by 21Shares US LLC, a wholly owned subsidiary of 21co Holdings Limited (formerly known as Amun Holdings Limited). The ultimate
parent company of 21co Holdings Limited is FalconX, a leading institutional digital asset prime brokerage.

The Sponsor believes that
the Trust will provide a cost-efficient way for Shareholders to implement strategic and tactical asset allocation strategies that use
XRP by investing in the Trust’s Shares rather than purchasing, holding and trading XRP directly. The latter alternative would require
selecting an XRP spot market and opening an account or arranging a private transaction, establishing a personal computer system capable
of transacting directly on the blockchain, and incurring the risk associated with maintaining and protecting a private key that is irre