Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 227

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 227
---
, however, is not binding on the United States Internal Revenue
Service (the “IRS”) or on the courts, and does not preclude the IRS from taking a contrary position. The discussion below
is based on the Internal Revenue Code of 1986, as amended (the “Code”), Treasury Regulations promulgated thereunder and judicial
and administrative interpretations of the Code, all as in effect on the date of this Prospectus and all of which are subject to change
either prospectively or retroactively. The tax treatment of Shareholders may vary depending upon their own particular circumstances.
Except where noted, this discussion only deals with Shares held as capital assets (generally, property held for investment), and does
not address special situations, including those of banks, financial institutions, insurance companies, regulated investment companies,
real estate investment trusts, dealers in securities, currencies, or commodities, tax-exempt organizations, tax-exempt or tax-advantaged
retirement plans or accounts, traders using a mark-to-market method of accounting, entities that are partnerships for U.S. federal
income tax purposes, persons holding Shares as a position in a “hedging,” “straddle,” “conversion,”
“constructive sale” or other integrated transaction for U.S. federal income tax purposes, persons whose “functional
currency” is not the U.S. dollar, persons required for U.S. federal income tax purposes to accelerate the recognition
of any item of gross income with respect to the Shares as a result of such income being recognized on an applicable financial statement,
or persons subject to the federal alternative minimum tax. Moreover, the discussion below does not address the effect of any state, local
or foreign tax law consequences that may apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers
with respect to all federal, state, local and foreign tax law considerations potentially applicable to their investment in Shares.

For purposes of this discussion,
a “U.S. Shareholder” is a 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