Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 109

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 109
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 is possible regulatory agencies or courts could disagree with this determination.

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If XRP is determined to be
offered or sold as a security by a federal court or transactions in XRP are determined to be securities transactions by a federal court,
the Trust could be considered an unregistered “investment company” under the 1940 Act, which could necessitate the Trust’s
liquidation. In this case, the Trust and the Sponsor may be deemed to have participated in an illegal offering of investment company
securities and there is no guarantee that the Sponsor will be able to register the Trust under the 1940 Act at such time or take such
other actions as may be necessary to ensure the Trust’s activities comply with applicable law, which could force the Sponsor to
liquidate the Trust.

It may also become more difficult
for XRP to be traded, cleared and custodied as compared to other digital assets that are not considered to be offered and sold as securities,
which could in turn negatively affect the liquidity and general acceptance of XRP and cause users to migrate to other digital assets.
Further, if any other digital asset with widespread markets is determined to be offered and sold as a “security” under federal
or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse
consequences for XRP as a digital asset due to negative publicity or a decline in the general acceptance of digital assets. In addition,
digital asset trading platforms that feature digital assets that are determined to be offered and sold as securities may face penalties
or be required to shut down if they do not have the licenses required to facilitate electronic markets in securities, which could result
in a reduction of the liquidity of XRP markets. As such, any determination that XRP or any other digital asset is offered or sold as
a security under federal or state securities laws may adversely affect the price of XRP and, as a result, the value of the Shares.

To the extent that XRP is
deemed to fall within the definition of being offered or sold as a security under U.S. federal securities laws, the Trust and the
Sponsor may be subject to additional requirements under the Investment Company Act and the Advisers Act. The Sponsor or the Trust may
be required to register as an investment adviser under the Advisers Act.

Such additional registration
may result in extraordinary, recurring and/or non-recurring expenses of the Trust, thereby