Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 48

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 48
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’s CEO resigned and FTX
and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation,
or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges,
and the SEC and CFTC brought civil securities and commodities fraud charges, against certain of FTX’s and its affiliates’
senior executives, including its former CEO. Around the same time, there were reports that approximately $300-600 million worth
of digital assets were removed from FTX and the full facts remain unknown, including whether such removal was the result of a hack, theft,
insider activity, or other improper behavior.

The potential consequences
of a spot market’s failure or failure to prevent market manipulation could adversely affect the value of the Shares. Any market
abuse, and a loss of investor confidence in XRP, may adversely impact pricing trends in XRP markets broadly, as well as an investment
in the Shares of the Trust.

Spot markets may be exposed to wash trading.

Spot markets on which XRP trades
may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into for other than bona fide reasons, such
as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic reasons, such as a desire for increased
visibility on popular websites that monitor markets for digital assets so as to improve their attractiveness to investors who look for
maximum liquidity, or it may be motivated by the ability to attract listing fees from token issuers who seek the most liquid and high-volume
exchanges on which to list their coins. Results of wash trading may include unexpected obstacles to trade and erroneous investment decisions
based on false information.

Even in the United States,
there have been allegations of wash trading even on regulated venues. Any actual or perceived false trading in the digital asset exchange
market, and any other fraudulent or manipulative acts and practices, could adversely affect the value of XRP and/or negatively affect
the market perception of XRP.

To the extent that wash trading
either occurs or appears to occur in spot markets on which XRP trades, investors may develop negative perceptions about XRP and the digital
assets industry more broadly, which could adversely impact the price of XRP and, therefore, the price of Shares. Wash trading also may
place more legitimate digital asset exchanges at a relative competitive disadvantage.

Spot markets may be exposed to front-running.

Spot markets on which XRP trades
may