Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 82

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 82
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 Ledger, can consume significant amounts of electricity, which may have a negative
environmental impact and give rise to public opinion against allowing, or government regulations restricting, the use of electricity for
the operations of digital asset networks.

The operations of the XRP and
other digital asset networks may also consume significant amounts of energy, even though the XRP Ledger is generally considered to consume
significantly less energy than other digital asset networks that utilize proof-of-stake or proof-of-work transaction validation mechanisms.
Further, in addition to the direct energy costs of performing calculations on any given digital asset network, there are indirect costs
that impact a network’s total energy consumption, including the costs of cooling the machines that perform these calculations.

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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 the recording of transactions due to congestion in the XRP Ledger. Moreover, unforeseen system failures, disruptions
in operations, or poor connectivity may also result in delays in the recording of transactions on the XRP Ledger. Any delay in the XRP
Ledger could affect the Authorized Participant’s ability