Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 85

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 85
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 a significant number of entities or individuals stop
running validators, there would be serious negative consequences to the XRP Ledger’s functionality, security and overall existence.

<div align='center'>37</div>

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 to buy or sell XRP at an advantageous price resulting in decreased confidence
in the XRP Ledger. Over the longer term, delays in confirming transactions could reduce the attractiveness to merchants and other commercial
parties as a means of payment. As a result, the XRP Ledger and the value of the Trust’s Shares would be adversely affected.

Risks Associated with Investing in the Trust

Investment Related Risks.

Investing in XRP and, consequently,
the Trust, is speculative. The price of XRP is volatile, and market movements of XRP are