Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 134

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 134
---
, larger financial services institutions
are publicly reported to have limited involvement in investment and trading in digital assets, although the participation landscape is
beginning to change. Currently, there is relatively limited use of digital assets in the retail and commercial marketplace in comparison
to relatively extensive use by speculators, and a significant portion of demand for digital assets is generated by speculators and investors
seeking to profit from the short- or long-term holding of digital assets.

Retail Sector

The retail sector includes
users transacting in direct peer-to-peer XRP activity through the direct sending of XRP over the XRP Ledger. The retail sector also includes
transactions in which consumers pay for goods or services from commercial or service businesses through direct transactions or third-party
service providers, although the use of XRP as a means of payment is still developing and has not been accepted in the same manner as bitcoin
because XRP has a generally different purpose than bitcoin.

Service Sector

This sector includes companies
that provide a variety of services including the buying, selling, payment processing and storing of XRP. For example, Coinbase, Kraken,
Bitstamp, Gemini, and LMAX Digital are some of the largest digital asset trading platforms by volume traded. Coinbase Custody, the XRP
Custodian, is a digital asset custodian that provides custodial accounts that store XRP for users. As the XRP Ledger continues to grow
in acceptance, it is anticipated that service providers will expand the currently available range of services and that additional parties
will enter the service sector for the XRP Ledger.

Competition

As of [ ], 2025, more than
[8,000] other digital assets, as tracked by CoinMarketCap.com, have been developed since the inception of bitcoin, which is currently
the most developed digital asset because of the length of time it has been in existence, the investment in the infrastructure that supports
it, and the network of individuals and entities that are using bitcoin in transactions. While XRP has enjoyed some success in its limited
history, the aggregate value of outstanding XRP is smaller than that of bitcoin and may be eclipsed by the more rapid development of
other digital assets. None of the information on CoinMarketCap.com is incorporated by reference into this Prospectus.

<div align='center'>62</div>

Regulation of XRP and Government Oversight

In December 2020, the
SEC filed the Ripple Complaint against the Ripple Defendants in the S.D.N.Y. alleging that the Ripple