Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 38

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 38
---
 asset space and established an inter-agency working
group for artificial intelligence and digital assets that is tasked with proposing a regulatory framework governing the issuance and
operation of digital assets, including stablecoins, in the United States. It is currently unknown how the actions or recommendations
of the task force and this executive order or future governmental actions may impact the status of XRP or any other digital asset as
being offered and sold as a “security” or how XRP or the Trust would be treated under any new or revised regulatory framework.

<div align='center'>16</div>

The trading prices of many digital assets, including XRP, have experienced extreme volatility in recent periods and may continue to do so. Extreme volatility in the future, including further decline in the trading prices of XRP, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.

The trading prices of many
digital assets, including XRP, have experienced extreme volatility in recent periods and may continue to do so. Several factors may affect
the price of XRP, including, but not limited to, supply and demand, investors’ expectations with respect to the rate of inflation,
interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of XRP or the use of XRP as
a form of payment. The issuance of XRP is determined by a computer code, not by a central bank, and prices can be extremely volatile.
For instance, there were steep increases in the value of certain digital assets, including XRP, over the course of 2021, and multiple
market observers asserted that digital assets were experiencing a “bubble.” These increases were followed by steep drawdowns
throughout 2022 in digital asset trading prices, including for XRP. These episodes of rapid price appreciation followed by steep
drawdowns have occurred multiple times throughout XRP’s history, including in 2021. Over the course of 2025, XRP prices continued
to exhibit volatility.

Extreme volatility may
persist, and the value of the Shares may significantly decline in the future without recovery. The digital asset markets may still be
experiencing a bubble or may experience a bubble again in the future.For example, in the first half of 2022, each of Celsius
Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a loss of confidence in participants of the
digital asset ecosystem and negative publicity surrounding digital assets more broadly