Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 85

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 85
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 digital assets generally, such actions could result in decreased security of a digital asset network, including the XRP Ledger, and consequently adversely impact the value of the Shares. This could adversely affect the price of XRP, or the operation of the XRP Ledger, and accordingly decrease the value of the Shares, by creating negative sentiment around digital assets generally.

Validators may cease to record transactions as a result of low transaction fees, which may adversely affect the usage of the XRP Ledger.

To the extent that any validators cease to record transactions that do not include the payment of a transaction fee in solved blocks or do not record a transaction because the transaction fee is too low, such transactions will not be recorded on the XRP Ledger until a block is solved by a validator who does not require the payment of transaction fees or is willing to accept a lower fee, if there is one. Any widespread delays in the recording of transactions could result in a loss of confidence in the XRP Ledger, resulting in a decline in XRP prices.

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Large-Scale Sales or Distributions.

Some entities hold large amounts
of XRP relative to other market participants, and to the extent such entities engage in large-scale hedging, sales or distributions on
non-market terms, or sales in the ordinary course, it could result in a reduction in the price of XRP and adversely affect the value
of the Shares. Additionally, political or economic crises may motivate large-scale acquisitions or sales of digital assets, including
XRP, either globally or locally. Such large-scale sales or distributions could result in selling pressure that may reduce the price of
XRP and adversely affect an investment in the Shares.

The largest XRP wallets are
believed to hold, in aggregate, a significant percentage of the XRP in circulation. Moreover, it is possible that other persons or entities
control multiple wallets that collectively hold a significant number of XRP, even if they individually only hold a small amount, and
it is possible that some of these wallets are controlled by the same person or entity. As a result of this concentration of ownership,
large sales or distributions by such holders could have an adverse effect on the market price of XRP. See “Risk Factors — The significant holdings of XRP by Ripple Labs and other early stakeholders could have an adverse effect on the market price of XRP.”

Congestion or delay in the XRP Ledger may delay purchases or sales of XRP by the Trust.

Increased transaction volume
could result in delays in