Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 87

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 87
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Different from directly owning XRP.

Investors should be aware that
the market value of Shares of the Trust may not have a direct relationship with the prevailing price of XRP, and changes in the prevailing
price of XRP similarly will not necessarily result in a comparable change in the market value of Shares of the Trust. The performance
of the Trust will not reflect the specific return an investor would realize if the investor actually held or purchased XRP directly. The
differences in performance may be due to factors such as fees, transaction costs, operating hours of the Exchange and Pricing Benchmark
tracking risk. Investors will also forgo certain rights conferred by owning XRP directly, such as the right to claim airdrops. See“Risk Factors — The inability to recognize the economic benefit of a ‘fork’ or an ‘airdrop’ could adversely impact an investment in the Trust.”

Pricing benchmark tracking risk.

Although the Trust will attempt
to structure its portfolio so that investments track the Pricing Benchmark, the Trust may not achieve the desired degree of correlation
between its performance and that of the Pricing Benchmark and thus may not achieve its investment objective. The difference in performance
may be due to factors such as fees, transaction costs, redemptions of, and subscriptions for, Shares, pricing differences or the cost
to the Trust of complying with various new or existing regulatory requirements.

Liquidity risk.

The ability of the Trust
or an XRP Counterparty to buy or sell XRP may be adversely affected by limited trading volume, lack of a market maker in the digital asset
markets, or legal restrictions. It is also possible that an XRP spot market or regulatory or governmental authority may suspend or restrict
trading in XRP altogether. Therefore, it may not always be possible to execute a buy or sell order at the desired price or to liquidate
an open position due to market conditions on spot markets, regulatory issues affecting XRP or other issues affecting counterparties.
XRP is a new asset with a very limited trading history. Therefore, the markets for XRP may be less liquid and more volatile than other
markets for more established products.

Shares of the Trust are intended
to be listed and traded on the Exchange. There is no certainty that there will be liquidity available on the Exchange or that the market
price will be in line with the NAV or the Principal Market NAV at any given time. There is also no guarantee that once the Shares of the
Trust are listed or traded on the