Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 97

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 97
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 as the amount of XRP required to create Shares
proportionally reflects the amount of XRP represented by the Shares outstanding at the time of such Basket being created. Assuming a
constant XRP price, the trading price of the Shares is expected to gradually decline relative to the price of XRP as the amount of XRP
represented by the Shares gradually declines.

Shareholders should be aware
that the gradual decline in the amount of XRP represented by the Shares will occur regardless of whether the trading price of the Shares
rises or falls in response to changes in the price of XRP.

The development and commercialization of the Trust is subject to competitive pressures.

The Trust and the Sponsor
face competition with respect to the creation of competing products, such as exchange-traded products offering exposure to the spot XRP
market or other digital assets. If the SEC were to approve many or all of the currently pending applications for such exchange-traded
XRP products, many or all of such products, including the Trust, could fail to acquire substantial assets, initially or at all.

The Sponsor’s competitors
may have greater financial, technical and human resources than the Sponsor. Smaller or early-stage companies may also prove to be effective
competitors, particularly through collaborative arrangements with large and established companies. The Trust’s competitors may
also charge a substantially lower fee than the Sponsor Fee in order to achieve initial market acceptance and scale. Accordingly, the
Sponsor’s competitors may commercialize a competing product more rapidly or effectively than the Sponsor is able to, which could
adversely affect the Sponsor’s competitive position, and the likelihood that the Trust will achieve initial market acceptance and
could have a detrimental effect on the scale and sustainability of the Trust and the Sponsor’s ability to generate meaningful revenues
from the Trust.

If the Trust fails to achieve
sufficient scale due to competition, the Sponsor may have difficulty raising sufficient revenue to cover the costs associated with launching
and maintaining the Trust, and such shortfalls could impact the Sponsor’s ability to properly invest in robust ongoing operations
and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the Shareholders. In addition,
the Trust may also fail to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number
of Authorized Participants willing to make a market in the Shares, which in turn could result in a significant premium or discount in
the Shares for extended periods and the Trust’s failure to reflect the performance