Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 95

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 95
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 the Sponsor
Fee and other liabilities.

Each outstanding Share represents
a fractional, undivided interest in the XRP held by the Trust. The Trust does not generate any income and transfers XRP to pay for the
Sponsor Fee and other liabilities. Therefore, the amount of XRP represented by each Share will gradually decline over time. This is also
true with respect to Shares that are issued in exchange for additional XRP over time, as the amount of XRP required to create Shares proportionally
reflects the amount of XRP represented by the Shares outstanding at the time of such creation unit being created. Assuming a constant
XRP price, the trading price of the Shares is expected to gradually decline relative to the price of XRP as the amount of XRP represented
by the Shares gradually declines.

Shareholders should be aware
that the gradual decline in the amount of XRP represented by the Shares will occur regardless of whether the trading price of the Shares
rises or falls in response to changes in the price of XRP.

The development and commercialization of the Trust is subject to competitive pressures.

The Trust and the Sponsor face
competition with respect to the creation of competing products, such as exchange-traded products offering exposure to the spot XRP market
or other digital assets. If the SEC were to approve many or all of the currently pending applications for such exchange-traded XRP products,
many or all of such products, including the Trust, could fail to acquire substantial assets, initially or at all.

The Sponsor’s competitors
may have greater financial, technical and human resources than the Sponsor. Smaller or early-stage companies may also prove to be effective
competitors, particularly through collaborative arrangements with large and established companies. The Trust’s competitors may
also charge a substantially lower fee than the Sponsor Fee in order to achieve initial market acceptance and scale. Accordingly, the
Sponsor’s competitors may commercialize a competing product more rapidly or effectively than the Sponsor is able to, which could
adversely affect the Sponsor’s competitive position, and the likelihood that the Trust will achieve initial market acceptance and
could have a detrimental effect on the scale and sustainability of the Trust and the Sponsor’s ability to generate meaningful revenues
from the Trust.

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If the Trust fails to achieve
sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs associated with launching
and maintaining the Trust, and such shortfalls could impact the Sponsor’s ability to