Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 81

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 81
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 contract
super users or admin key holders may be able to extract funds from the pool, liquidate assets held in the pool, or take other actions
that decrease the value of the digital assets held by the smart contract in reserves. Even for digital assets that have adopted a decentralized
governance mechanism, such as smart contracts that are governed by the holders of a governance token, such governance tokens can be concentrated
in the hands of a small group of core community members, who would be able to make similar changes unilaterally to the smart contract.
If any such super user or group of core members unilaterally make adverse changes to a smart contract, the design, functionality, features
and value of the smart contract, its related digital assets may be harmed. In addition, assets held by the smart contract in reserves
may be stolen, misused, burnt, locked up or otherwise become unusable and irrecoverable. Super users can also become targets of hackers
and malicious attackers. Furthermore, the underlying smart contracts may be insecure, contain bugs or other vulnerabilities, or otherwise
may not work as intended. Any of the foregoing could cause users of the DeFi application to be negatively affected, or could cause the
DeFi application to be the subject of negative publicity. Because DeFi applications may be built on the XRP Ledger and represent a significant
source of demand for XRP, public confidence in the XRP Network itself could be negatively affected, and the value of XRP could decrease.

<div align='center'>35</div>

New competing digital assets may pose a challenge to XRP’s current market position, which could have a negative impact on the price of XRP and may have a negative impact on the performance of the Trust.

XRP faces significant competition from other digital assets, as well as from other technologies or payment forms, such as Swift, ACH, remittance networks, credit cards and cash. There is no guarantee that XRP will become a dominant form of cross-border payments, store of value or method of exchange. XRP is also supported by fewer exchanges than more established digital assets, which could impact its liquidity.

Competition from other consortia or private blockchains could have a negative impact on the price of XRP and adversely affect an investment in the Shares.

Many consortia and financial
institutions that are potential XRP users are researching and investing resources into private or permissioned blockchain platforms that
could compete with XRP to facilitate cross-currency transactions. These initiatives, such as Cons