Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 236

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 236
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fee incurred by a Shareholder in purchasing Shares will be treated as part of the Shareholder’s tax basis in the underlying assets
of the Trust. Similarly, any brokerage fee incurred by a Shareholder in selling Shares will reduce the amount realized by the Shareholder
with respect to the sale.

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Shareholders
will be required to recognize the full amount of gain or loss upon a sale or deemed sale
of XRP by the Trust (as discussed above), even though some or all of the proceeds of such
sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective
pro rata shares of each expense incurred by the Trust to the same extent as if they directly
incurred the expense. However, most trust expenses are expected to result in miscellaneous
itemized deductions, and noncorporate taxpayers generally are not allowed any deduction with
respect to miscellaneous itemized deductions for tax years beginning before January 1, 2026.

Investment by Certain Retirement Plans

Individual retirement accounts
(“IRAs”) and participant-directed accounts under tax-qualified retirement plans are limited in the types of investments they
may make under the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code section 401(a) plan
should consult with their own tax advisors as to the tax consequences of a purchase of Shares.

United States Information Reporting and Backup Withholding; Tax Return Reporting for Digital Assets

The Trustee will file certain
information returns with the IRS, and provide certain tax-related information to Shareholders, in connection with the Trust. To the extent
required by applicable regulations, each Shareholder will be provided with information regarding its allocable portion of the Trust’s
annual income, expenses, gains and losses (if any). A U.S. Shareholder may be subject to United States backup withholding tax
in certain circumstances unless it provides its taxpayer identification number and complies with certain certification procedures. Non-U.S. Shareholders
may have to comply with certification procedures to establish that they are not a United States person, and some Non-U.S. Shareholders
may be required to meet certain information reporting or certification requirements imposed by Code requirements popularly referred to
as “FATCA” in order to avoid certain information reporting and withholding tax requirements.

The amount of any backup withholding
will be allowed as a credit against a Shareholder’s U.S. federal income tax liability and may entitle the Shareholder to a
refund,