Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 29

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 29
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 ● | If regulatory changes or interpretations of an Authorized                                                                            
 Participant’s, the Trust’s or the Sponsor’s activities require the regulation of an Authorized Participant, the Trust                
 or the Sponsor as a money service business under the regulations promulgated by the Financial Crimes Enforcement Network (“FinCEN”), 
 an Authorized Participant, the Trust or the Sponsor may be required to register and comply with such regulations, which could result 
 in extraordinary, recurring and/or nonrecurring expenses.                                                                            |

<div align='center'>11</div>

Risks Associated with the Tax Treatment of XRP

| ● | The                                                                            
 ongoing activities of the Trust may generate tax liabilities for Shareholders. |

| ● | The tax treatment of XRP and transactions involving XRP for 
 state and local tax purposes is not settled.                |

| ● | A hard “fork” of the XRP Ledger could result in 
 Shareholders incurring a tax liability.         |

Other Risks

| ● | The Exchange on which the Shares are listed may halt trading                                
 in the Trust’s Shares, which would adversely impact a Shareholder’s ability to sell Shares. |

| ● | The market infrastructure of the XRP spot market could result                                                                        
 in the absence of active Authorized Participants able to support the trading activity of the Trust, which would affect the liquidity 
 of the Shares in the secondary market and make it difficult to dispose of Shares.                                                    |

| ● | Shareholders that are not Authorized Participants may only                                                                                
 purchase or sell their Shares in secondary trading markets, and the conditions associated with trading in secondary markets may adversely 
 affect Shareholders’ investment in the Shares.                                                                                            |

| ● | The Sponsor is leanly staffed and relies heavily on key personnel.                                                               
 The departure of any such key personnel could negatively impact the Trust’s operations and adversely impact an investment in the 
 Trust.                                                                                                                           |

| ● | Shareholders do not have the rights enjoyed by investors in                                                                          
 certain other vehicles and may be adversely affected by a lack of statutory rights and by limited voting and distribution rights. In 
 certain circumstances, Shareholders may vote to appoint a successor Sponsor following the Voluntary Withdrawal of the Sponsor, or to 
 continue the Trust in certain instances of dissolution of the Trust. Shareholders shall otherwise have no voting rights with respect 
 to the Trust.                                                                                                                        |

| ● | The liability of the Sponsor and the Trustee is limited, and                                                         
 the value of the Shares will be adversely affected if the Trust is required to indemnify the Trust