Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 115

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 115
---
 In the face of such developments, the required registrations
and compliance steps may result in extraordinary, nonrecurring expenses to the Trust. In particular, the Trust may be required to rapidly
unwind its entire position in XRP at potentially unfavorable prices and potentially terminate, in the event that transactions of XRP
were determined to fall under the definition of being offered and sold as securities under U.S. securities laws. If the Sponsor
decides to terminate the Trust in response to the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time
that is disadvantageous to Shareholders. As of the date of this Prospectus, the Sponsor is not aware of any rules that have been proposed
to regulate XRP as a commodity interest or as being offered or sold as a security.

To the extent that XRP
is determined to be offered or sold as a security, the Trust and the Sponsor may also be subject to additional regulatory requirements,
including under the 1940 Act, and the Sponsor may be required to register as an investment adviser under the Advisers Act. If the Sponsor
determines not to comply with such additional regulatory and registration requirements, the Sponsor will terminate the Trust. Any such
termination could result in the liquidation of the Trust’s XRP at a time that is disadvantageous to Shareholders. Alternatively,
compliance with these requirements could result in additional expenses to the Trust or significantly limit the ability of the Trust to
pursue its investment objective.

<div align='center'>53</div>

To the extent that XRP
is deemed to fall within the definition of a “commodity interest” under the CEA, the Trust and the Sponsor may be subject
to additional regulation under the CEA and CFTC regulations. The Sponsor may be required to register as a commodity pool operator or
commodity trading advisor with the CFTC and become a member of the National Futures Association and may be subject to additional regulatory
requirements with respect to the Trust, including disclosure and reporting requirements. These additional requirements may result in
extraordinary, recurring and/or nonrecurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor
and/or the Trust determines not to comply with such additional regulatory and registration requirements, the Sponsor may terminate the
Trust. Any such termination could result in the liquidation of the Trust’s XRP at a time that is disadvantageous to Shareholders.

The SEC has recently proposed
rule changes amending and redesignating rule