Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 115

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 115
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, including XRP. The Sponsor is
studying the impact that such amendments may have on the Trust and its arrangements with the XRP Custodian. It is possible that such amendments,
if adopted, could prevent the XRP Custodian from serving as service providers to the Trust, or require potentially significant modifications
to existing arrangements, which could cause the Trust to bear potentially significant increased costs. If the Sponsor is unable to make
such modifications or appoint successor service providers to fill the roles that the XRP Custodian currently plays, the Trust’s
operations (including in relation to creations and redemptions of Baskets and the holding of XRP) could be negatively affected, the Trust
could dissolve (including at a time that is potentially disadvantageous to Shareholders), and the value of the Shares or an investment
in the Trust could be affected. Further, the proposed amendments could have a severe negative impact on the price of XRP and therefore
the value of the Shares if enacted, by, among other things, making it more difficult for investors to gain access to XRP, or causing certain
holders of XRP to sell their holdings.

If regulatory changes or interpretations of an Authorized Participant’s, the Trust’s or the Sponsor’s activities require the regulation of an Authorized Participant, the Trust or the Sponsor as a money service business under the regulations promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act or as a money transmitter or digital asset business under state regimes for the licensing of such businesses, an Authorized Participant, the Trust or the Sponsor may be required to register and comply with such regulations, which could result in extraordinary, recurring and/or nonrecurring expenses to the Authorized Participant, Trust or Sponsor or increased commissions for the Authorized Participant’s clients, thereby reducing the liquidity of the Shares.

To the extent that the activities
of any Authorized Participant, the Trust or the Sponsor cause it to be deemed a “money services business” under the regulations
promulgated by FinCEN under the authority of the BSA, such Authorized Participant, the Trust or the Sponsor may be required to comply
with FinCEN regulations, including those that would mandate the Authorized Participant to implement anti-money laundering programs, make
certain reports to FinCEN and maintain certain records. Similarly, the activities of an Authorized Participant, the Trust or the Sponsor
may require it to be licensed as a money transmitter or as a digital asset business, such as under NYDFS’ BitLicense regulation.

Such additional