Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 198

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 198
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 effect they
would have on other funds its affiliates may manage. In addition, the Sponsor may be required to indemnify its officers, directors and
key employees with respect to their activities on behalf of other funds, if the need for indemnification arises. This potential indemnification
could cause the Sponsor’s assets to decrease. If the Sponsor’s other sources of income are not sufficient to compensate for
the indemnification, it could cease operations, which could in turn result in Trust losses and/or termination of the Trust.

The Sponsor has an affiliate,
21Shares AG, that issues various exchange traded products providing exposure to certain digital assets in non-U.S. jurisdictions.
In addition, the Sponsor’s affiliate(s) may take management fees in-kind in XRP, and as such, may engage in trading of the
underlying asset across affiliates. The Sponsor has adopted and implemented policies and procedures that are reasonably designed to ensure
compliance with applicable law, including a Code of Ethics providing guidance on conflicts of interest (collectively, the “Policies”).
As of the effectiveness of the Registration Statement, the Sponsor’s Policies are in place and require that the Sponsor eliminate,
mitigate, or otherwise disclose conflicts of interest. Additionally, the Sponsor has adopted policies and procedures requiring that certain
applicable personnel pre-clear personal trading activity in which XRP is the referenced asset. The Sponsor has also implemented an Information
Barrier Policy restricting certain applicable personnel from obtaining sensitive information. The Sponsor believes that these controls
are reasonably designed to mitigate the risk of conflicts of interest and other impermissible activity.

Furthermore, the Sponsor or
its affiliates may participate in transactions related to XRP, either for their own account or for account of a client. Such transactions
may not serve to benefit the shareholders of the Trust and may have a positive or negative effect on the value of the XRP held by the
Trust and, consequently, on the market value of XRP. In addition, the Sponsor or its affiliates may act in other capacities with
regard to other investment products offered by either party.

The Sponsor or its affiliates
may issue derivative instruments relating to XRP. The Sponsor’s affiliate(s) may offer investment products that offer short
exposure to XRP and may offer other products that offer long exposure to XRP, either of which may take market share from the Trust or
affect the value of XRP or an investment in the Trust. Introduction of such competing products may affect the market value of XRP and
an investment in the Trust.