Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 111

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 111
---
, registered investment companies subject to the 1940 Act must have a board of directors, a certain minimum percentage
of whom must be independent (generally, at least a majority). Further, after an initial two-year period, such registered investment companies’
advisory and sub-advisory contracts must be annually reapproved by a majority of (1) the entire board of directors and (2) the
independent directors. Additionally, such registered investment companies are subject to prohibitions and restrictions on transactions
with their affiliates and required to maintain fund assets with special types of custodians (generally, banks or broker-dealers). Moreover,
such registered investment companies are subject to significant limits on the use of leverage, as well as limits on the form of capital
structure and the types of securities a registered fund can issue.

The Trust is not registered
as an investment company under the 1940 Act, and the Sponsor believes that the Trust is not permitted or required to register under such
act. Consequently, Shareholders do not have the regulatory protections provided to investors in investment companies.

The Trust will not hold or
trade in commodity interests regulated by the CEA, as administered by the CFTC. Furthermore, the Sponsor believes that the Trust
is not a commodity pool for purposes of the CEA, and that neither the Sponsor nor the Trustee is subject to regulation by the CFTC as
a commodity pool operator or a commodity trading advisor in connection with the operation of the Trust. Consequently, Shareholders will
not have the regulatory protections provided to investors in CEA-regulated instruments or commodity pools.

Future and current laws and regulations by a United States or foreign government or quasi-governmental agencies could have an adverse effect on an investment in the Trust.

The regulation of XRP and
related products and services continues to evolve, may take many different forms and will, therefore, impact XRP and its usage in a variety
of manners. The inconsistent, unpredictable, and sometimes conflicting regulatory landscape may make it more difficult for XRP businesses
to provide services, which may impede the growth of the XRP economy and have an adverse effect on consumer adoption of XRP. There
is a possibility of future regulatory change altering, perhaps to a material extent, the nature of an investment in the Trust or the
ability of the Trust to continue to operate. Additionally, changes to current regulatory determinations of XRP’s status as not
being offered and sold as a security, changes to regulations surrounding digital asset