Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 44

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 44
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, failure to perform, security
breach, or other problems affecting the XRP Custodian, any operational issues that may arise from creating and redeeming Shares via cash
transactions, the closing of XRP trading platforms due to fraud, failures, security breaches or otherwise, or network outages or congestion,
spikes in transaction fees demanded by miners, or other problems or disruptions affecting the XRP network, then potential market participants,
such as the Authorized Participants and their customers, who would otherwise be willing to purchase or redeem Baskets to take advantage
of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying XRP may not take
the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. In certain such cases, the Sponsor
may suspend the process of creation and redemption of Baskets. During such times, trading spreads, and the resulting premium or discount,
on Shares may widen. Alternatively, in the case of a network outage or other problems affecting the XRP network, the processing of transactions
on the XRP Ledger may be disrupted, which in turn could affect the creation or redemption of Baskets. If this is the case, the liquidity
of the Shares may decline and the price of the Shares may fluctuate independently of the price of XRP and may fall or otherwise diverge
from NAV. Furthermore, in the event that the market for XRP should become relatively illiquid and thereby materially restrict opportunities
for arbitraging by delivering XRP in return for Baskets, the price of Shares may diverge from the value of XRP.

Authorized Participants may act in the same or similar capacity for other competing products.

Authorized Participants play
a critical role in supporting the U.S. spot XRP exchange-traded product ecosystem. Currently, the number of potential Authorized
Participants willing and capable of serving as Authorized Participants to the Trust or other competing products is limited. Authorized
Participants may act in the same or similar capacity for other competing products, including exchange-traded products offering exposure
to the spot XRP market or other digital assets. The Trust is therefore subject to risks associated with these competing products utilizing
the same Authorized Participants to support the trading activity of the Trust and liquidity in the Trust’s Shares.

To the extent Authorized Participants
exit thebusiness or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants
step forward to perform these services, Shares may trade at a material discount to NAV and possibly