Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 94

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 94
---
 of investments in a single asset.

Unlike other funds that may
invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class. This
concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with XRP and digital assets.
By concentrating its investment strategy solely in XRP, any losses suffered as a result of a decrease in the value of XRP can be expected
to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets
that were diversified.

The lack of active trading markets for the Shares may result in losses on Shareholders’ investments at the time of disposition of Shares.

Although Shares of the Trust
are expected to be publicly listed and traded on an exchange, there can be no guarantee that an active trading market for the Shares will
develop or be maintained. If Shareholders need to sell their Shares at a time when no active market for them exists, the price Shareholders
receive for their Shares, assuming that Shareholders are able to sell them, may be lower than the price that Shareholders would receive
if an active market did exist and, accordingly, a Shareholder may suffer losses.

Several factors may affect the Trust’s ability to achieve its investment objective on a consistent basis.

There can be no assurance
that the Trust will achieve its investment objective. Prospective investors should read this entire Prospectus and consult with their
own advisers before subscribing for Shares. Factors that may affect the Trust’s ability to meet its investment objective include:
(1) The Trust’s, an XRP Counterparty’s or an Authorized Participant’s ability to purchase and sell or transfer
and receive XRP in an efficient manner to effectuate creation and redemption orders; (2) transaction fees associated with the XRP
Ledger; (3) the XRP market becoming illiquid or disrupted; (4) the need to conform the Trust’s portfolio holdings to
comply with investment restrictions or policies or regulatory or tax law requirements; (5) early or unanticipated closings of the
markets on which XRP trades, resulting in the inability of Authorized Participants to execute intended portfolio transactions; and (6) accounting
standards.

The amount of XRP represented by the Shares is expected to decline over time.

The amount of XRP represented
by the Shares will continue to be reduced during the life of the Trust due to the transfer of the Trust’s XRP to pay for