Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 207

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 207
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 Shareholder that is:

| ● | an individual who is treated as a citizen or resident of the 
 United States for U.S. federal income tax purposes;          |

| ● | a corporation (or entity treated as a corporation for U.S. federal                                                                  
 income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |

| ● | an estate, the income of which is includible in gross income      
 for U.S. federal income tax purposes regardless of its source; or |

| ● | a trust, if a court within the United States is able                                                                             
 to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to 
 control all substantial decisions of the trust.                                                                                  |

If a partnership or other entity
or arrangement treated as a partnership for U.S. federal income tax purposes holds Shares, the tax treatment of a partner generally
depends upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding Shares, the
discussion below may not be applicable and we urge you to consult your own tax adviser for the U.S. federal income tax implications
of the purchase, ownership and disposition of such Shares.

Taxation of the Trust

The Sponsor and the
Trustee will treat the Trust as a “grantor trust” for U.S. federal income tax purposes. Although not free from
doubt due to the lack of directly governing authority, if the Trust operates as expected, the Trust should be classified as a
“grantor trust” for U.S. federal income tax purposes (and the following discussion assumes such classification). As
a result, the Trust itself should not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses
should “flow through” to the Shareholders, and the Trustee will report the Trust’s income, gains, losses and
deductions to Shareholders and the IRS on that basis. There can be no assurance that the IRS will agree with the conclusions herein
and it is possible that the IRS or another tax authority could assert a position contrary to one or all of those conclusions and
that a court could sustain that contrary position. Neither the Sponsor nor the Trustee will request a ruling from the IRS with
respect to the classification of the Trust for U.S. federal income tax purposes or with respect to any other matter. If the IRS
were to assert successfully that the Trust is not