Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 40

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 40
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 the impacts, of volatility in the price of XRP.

Spot markets on which XRP trades are relatively new and largely unregulated.

Digital asset markets, including
spot markets for XRP, are growing rapidly. The spot markets through which XRP and other digital assets trade are new and, in some cases,
may be subject to but not comply with their relevant jurisdiction’s regulations. These markets are local, national and international
and include a broadening range of digital assets and participants. Significant trading may occur on systems and platforms with minimum
predictability. Spot markets may impose daily, weekly, monthly or customer-specific transaction or withdrawal limits or suspend withdrawals
entirely, rendering the exchange of XRP for fiat currency difficult or impossible. Participation in spot markets requires users to take
on credit risk by transferring XRP from a personal account to a third party’s account.

Digital asset exchanges
do not appear to be subject to, and may not comply with, regulation in a similar manner as other regulated trading platforms, such as
national securities exchanges or designated contract markets. Many digital asset exchanges are unlicensed, unregulated, operate without
extensive supervision by governmental authorities, and do not provide the public with significant information regarding their ownership
structure, management team, corporate practices, cybersecurity, and regulatory compliance. In particular, those located outside the United States
may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions.

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As a result, trading activity
on or reported by these digital asset exchanges is generally significantly less regulated than trading in regulated U.S. securities
and commodities markets, and may reflect behavior that would be prohibited in regulated U.S. trading venues. Furthermore, many spot
markets lack certain safeguards put in place by more traditional exchanges to enhance the stability of trading on the exchange and prevent
flash crashes, such as limit-down circuit breakers. As a result, the prices of digital assets such as XRP on digital asset exchanges may
be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges. Tools to detect and deter
fraudulent or manipulative trading activities (such as market manipulation, front-running of trades, and wash-trading) may not be available
to or employed by digital asset exchanges or may not exist at all. As a result, the marketplace may lose confidence in, or may experience
problems relating to, these venues.

No XRP exchange is immune from
these risks. While the Trust itself does not