Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 30

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 30
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 register and comply with such regulations, which could result  
 in extraordinary, recurring and/or nonrecurring expenses.                                     |

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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 Trustee or the Sponsor.               |

| ● | Due to                                                                                          
 the increased use of technologies, intentional and unintentional cyber-attacks pose operational 
 and information security risks, the occurrence of which can negatively impact an investment     
 in the Trust.                                                                                   |

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RISK FACTORS</div>