Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 98

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 98
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 lower than the price that Shareholders would receive
if an active market did exist and, accordingly, a Shareholder may suffer losses.

<div align='center'>43</div>

Several factors may affect the Trust’s ability to achieve its investment objective on a consistent basis.

There can be no assurance
that the Trust will achieve its investment objective. Prospective investors should read this entire Prospectus and consult with their
own advisers before subscribing for Shares. Factors that may affect the Trust’s ability to meet its investment objective include:
(1) The Trust’s, an XRP Counterparty’s or an Authorized Participant’s ability to purchase and sell or transfer
and receive XRP in an efficient manner to effectuate creation and redemption orders; (2) transaction fees associated with the XRP
Ledger; (3) the XRP market becoming illiquid or disrupted; (4) the need to conform the Trust’s portfolio holdings to
comply with investment restrictions or policies or regulatory or tax law requirements; (5) early or unanticipated closings of the
markets on which XRP trades, resulting in the inability of Authorized Participants to execute intended portfolio transactions; and (6) accounting
standards.

The amount of XRP represented by the Shares is expected to decline over time.

The amount of XRP represented
by the Shares will continue to be reduced during the life of the Trust due to the transfer of the Trust’s XRP to pay for the Sponsor
Fee and other liabilities.

Each outstanding Share
represents a fractional, undivided interest in the XRP held by the Trust. The Trust does not generate any income and transfers XRP to
pay for the Sponsor Fee and other liabilities. Therefore, the amount of XRP represented by each Share will gradually decline over time.
This is also true with respect to Shares that are issued in exchange for additional XRP over time, as the amount of XRP required to create
Shares proportionally reflects the amount of XRP represented by the Shares outstanding at the time of such creation Basket being created.
Assuming a constant XRP price, the trading price of the Shares is expected to gradually decline relative to the price of XRP as the amount
of XRP represented by the Shares gradually declines.

Shareholders should be aware
that the gradual decline in the amount of XRP represented by the Shares will occur regardless of whether the trading price of the Shares
rises or falls in response to changes in the price of XRP.

The development and commercialization of the Trust is