Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 45

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 45
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 face delisting. To the extent that
exchange-traded products offering exposure to the spot XRP market or other digital assets utilize substantially the same Authorized Participants,
this industry concentration may have the effect of magnifying the risks associated with the Authorized Participants, as operational disruptions
or adverse developments impacting the Authorized Participants may be felt on an industry-wide basis, which, in turn, may adversely affect
not only the Trust and the value of an investment in the Shares, but also these competing products utilizing the same Authorized Participants
and, more generally, exchange-traded products offering exposure to the spot XRP market or other digital assets. These industry-wide adverse
effects could result in a broader loss of confidence in exchange-traded products offering exposure to the spot XRP market or other digital
assets, which could further impact the Trust and the value of an investment in the Shares.

Spot markets may be exposed to security breaches.

The nature of the assets held
at XRP spot markets makes them appealing targets for hackers and a number of XRP spot markets have been victims of cybercrimes. Over the
past several years, some digital asset exchanges have been closed due to security breaches. In many of these instances, the customers
of such digital asset exchanges were not compensated or made whole for the partial
or complete losses of their account balances in such digital asset exchanges. While, generally speaking, smaller digital asset exchanges
are less likely to have the infrastructure and capitalization that make larger digital asset exchanges more stable, larger digital asset
exchanges are more likely to be appealing targets for hackers and malware.

<div align='center'>19</div>

For example, the collapse
of Mt. Gox, which filed for bankruptcy protection in Japan in late February 2014, demonstrated that even the largest digital asset
exchanges could be subject to abrupt failure with consequences for both users of digital asset exchanges and the digital asset industry
as a whole. In particular, in the two weeks that followed the February 7, 2014, halt of bitcoin withdrawals from Mt. Gox, the
value of one bitcoin fell on other exchanges from around $795 on February 6, 2014, to $578 on February 20, 2014. Additionally,
in January 2015, Bitstamp announced that approximately 19,000 bitcoin had been stolen from its operational or “hot”
wallets. Further, in August 2016, it was reported that almost 120,000 bitcoin worth around $78 million were stolen from Bit