Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 93

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 93
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 and redemptions, and resulting relative reliance on cash creations and redemptions, could cause
the Sponsor to halt or suspend the creation or redemption of Shares during times of market volatility or turmoil, among other consequences.
Further, there can be no assurance that broker-dealers would be willing to serve as Authorized Participants with respect to the in-kind
creation and redemption of Shares. Any of these factors could adversely affect the performance of the Trust and the value of the Shares.

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The use of cash creations
and redemptions, as opposed to in-kind creations and redemptions, could cause delays in trade execution due to potential operational
issues arising from implementing a cash creation and redemption model, which involves greater operational steps (and therefore execution
risk) than the originally contemplated in-kind creation and redemption model, or the potential unavailability or exhaustion of the Trust’s
ability to borrow XRP or cash as trade credit (“Trade Credits”), which the Trust would not be able to use in connection with
in-kind creations and redemptions. Such delays could cause the execution price associated with such trades to materially deviate from
the Pricing Benchmark price used to determine the NAV. Even though Authorized Participants are responsible for the dollar cost of
such difference in prices, Authorized Participants could default on their obligations to the Trust, or such potential risks and costs
could lead to Authorized Participants, 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, to elect to not participate
in the Trust’s Share creation and redemption processes. This may adversely affect the arbitrage mechanism intended to keep the
price of the Shares closely linked to the price of XRP, and as a result, the price of the Shares may fall or otherwise diverge from NAV. If
the arbitrage mechanism is not effective, purchases or sales of Shares on the secondary market could occur at a premium or discount to
NAV, which could harm Shareholders by causing them buy Shares at a price higher than the value of the underlying XRP held by the Trust
or sell Shares at a price lower than the value of the underlying XRP held by the Trust, causing Shareholders to suffer losses.

To the knowledge of the Sponsor,
exchange-traded products for spot-market commodities other than XRP, such as gold and silver, generally employ in-kind creations and
redemptions with the underlying asset. The