Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 112

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 112
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 futures or derivatives or other related products,
or actions by a United States or foreign government or quasi-governmental agencies exerting regulatory authority over XRP, the XRP
Ledger, XRP trading, or related activities impacting other parts of the digital asset market, may adversely impact XRP and therefore
may have an adverse effect on the value of your investment in the Trust.

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A number of jurisdictions worldwide
have adopted prohibitions or restrictions on XRP trading and other activity relating to virtual currencies and digital assets, which could
negatively affect XRP prices or demand. For instance, some observers believe that Chinese governmental regulatory actions regarding digital
asset mining and trading activity were one factor that contributed to the drawdowns in global XRP prices in May 2021.

The legal status of XRP and
other digital assets varies substantially from country to country. In many countries, the legal status of XRP is still undefined or changing.
Some countries have deemed the usage of certain digital assets illegal. Other countries have banned digital assets or securities or derivatives
in respect to them (including for certain categories of investors), banned the local banks from working with digital assets or have restricted
digital assets in other ways. For example, XRP and other digital assets currently face an uncertain regulatory landscape in many foreign
jurisdictions, such as the European Union, China, the United Kingdom, Australia, Russia, Israel, Poland, India and Canada. In some countries,
such as the United States, different government agencies define digital assets differently, leading to further regulatory conflict
and uncertainty.

In addition, cybersecurity
attacks by state actors, particularly for the purpose of evading international economic sanctions, are likely to attract additional regulatory
scrutiny to the acquisition, ownership, sale and use of digital assets, including XRP. The effect of any existing regulation or future
regulatory change on the Trust or XRP is impossible to predict, but such change could be substantial and adverse to the Trust and the
value of the Shares.

If the CFTC determines
that XRP is a “commodity” under the CEA and the rules thereunder, it may have jurisdiction to prosecute fraud and manipulation
in the cash, or spot, market for XRP. The CFTC may pursue enforcement actions relating to fraud and manipulation involving XRP and XRP
markets. Beyond instances of fraud or manipulation, the CFTC generally would not oversee cash or spot market exchanges or transactions
involving