Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 72

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 72
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ounced several months in advance. The circumstances of each fork are unique, and their relative significance varies. It is possible
that a particular fork may result in a significant disruption to XRP and, potentially, may result in broader market disruption should
pricing become difficult following the fork. It is not possible to predict with accuracy the impact that any anticipated fork could have
or for how long any resulting disruption may exist.

Forks may have a detrimental
effect on the value of XRP, including by negatively affecting digital asset allocations or by failing to capture of the full value of
the newly-forked XRP if it is excluded from the Pricing Benchmark. Forks can also introduce new security risks. For example, forks may
result in “replay attacks,” or attacks in which transactions from one network were rebroadcast to nefarious effect on the
other network. After a hard fork, it may become easier for an individual validator or validating pool’s hashing power to exceed
50% of the processing power of the digital asset network, thereby making digital assets that rely on proof of work more susceptible to
attack. For example, when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions from
one network were rebroadcast to nefarious effect on the other network, plagued ether exchanges through at least October 2016. An
ether exchange announced in July 2016 that it had lost 40,000 Ethereum Classic, worth about $100,000 at that time, as a result of
replay attacks. Similar replay attack concerns occurred in connection with the Bitcoin Cash and Bitcoin SV networks split in November 2018.
Another possible result of a hard fork is an inherent decrease in the level of security.

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A hard fork may adversely
affect the price of XRP at the time of announcement or adoption. For example, the announcement of a hard fork could lead to increased
demand for the pre fork digital asset, in anticipation that ownership of the pre fork digital asset would entitle holders to a new digital
asset following the fork. The increased demand for the pre fork digital asset may cause the price of the digital asset to rise. After
the hard fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would be less than the
price of the digital asset immediately prior to the fork. Furthermore, the Sponsor will, as permitted by the terms of the Trust
Agreement, determine which network is