Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 33

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 33
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, and payment providers adopt XRP for
cross-border transactions and other use cases, there is a risk that the fixed supply may not meet the growing demand, leading to supply
shortages and further price volatility. In the case of massive adoption, the scarcity of XRP could raise its value too much, making it
less appealing for day-to-day transactions or use as a liquidity bridge in cross-border payments, as businesses might prefer a more
stable and widely available currency.

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The significant holdings of XRP by Ripple Labs and other early stakeholders could have an adverse effect on the market price of XRP.

The largest XRP wallets are
believed to hold, in aggregate, a significant percentage of the XRP in circulation. Ripple Labs holds a large portion of the XRP supply,
which has led to concerns about centralization. Despite escrow mechanisms that gradually release XRP into the market, Ripple Labs still
retains control over a significant portion of XRP, which can impact market dynamics if large amounts are sold. Likewise large sales or
distributions by other holders of a significant portion of the XRP supply could have an adverse effect on the market price of XRP. Media
reports in August 2025 estimate that XRP co-founder Chris Larsen holds at least 2.5 billion XRP tokens and sales previously attributed
to Mr. Larsen have resulted in heighted volatility in the market price and trading volume of XRP. For instance, sales believed to be
attributable to Mr. Larsen in August 2025 resulted in the market price of XRP dropping 14% intraday. The concentration of XRP in the
hands of Ripple Labs and early stakeholders, such as XRP co-founder Chris Larsen, could affect the market’s confidence in XRP as
a digital asset.

A determination that XRP or any other digital asset is offered or sold as a “security” may adversely affect the price of XRP and the value of the Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.

Depending on its characteristics,
a digital asset, including XRP, may be considered to be offered and sold as a “security” under U.S. federal securities
laws. The tests for determining whether a particular digital asset is offered and sold as a “security” are complex and difficult
to apply, and the outcome is difficult to predict. Public, though non-binding, statements by senior officials at