Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 91

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 91
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, the price of the Shares may fall or otherwise diverge from NAV.

If the processes of creation
and redemption of Shares (which depend on timely transfers of XRP to and by the XRP Custodian) encounter any unanticipated difficulties
due to, for example, the price volatility of XRP, the insolvency, business failure or interruption, default, failure to perform, security
breach, or other problems affecting the XRP Custodian, any operational issues that may arise from creating and redeeming Shares via cash
transactions, the closing of XRP trading platforms due to fraud, failures, security breaches or otherwise, or network outages or congestion,
spikes in transaction fees demanded by miners, or other problems or disruptions affecting the XRP network, then potential market participants,
such as the Authorized Participants and their customers, who would otherwise be willing to purchase or redeem Baskets to take advantage
of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying XRP may not take
the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. In certain such cases, the
Sponsor may suspend the process of creation and redemption of Baskets. During such times, trading spreads, and the resulting premium
or discount, on Shares may widen. Alternatively, in the case of a network outage or other problems affecting the XRP network, the processing
of transactions on the XRP Ledger may be disrupted, which in turn could affect the creation or redemption of Baskets. If this is the
case, the liquidity of the Shares may decline and the price of the Shares may fluctuate independently of the price of XRP and may fall
or otherwise diverge from NAV. Furthermore, in the event that the market for XRP should become relatively illiquid and thereby materially
restrict opportunities for arbitraging by delivering XRP in return for Baskets, the price of Shares may diverge from the value of XRP.

Security threats and cyber-attacks could result in the halting of Trust operations and a loss of Trust assets or damage to the reputation of the Trust, each of which could result in a reduction in the price of the Shares.

Security breaches, cyber-attacks,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. Multiple thefts of XRP and
other digital assets from other holders have occurred in the past. Because of the decentralized process for transferring XRP, thefts can