Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 103

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 103
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 be able to register the Trust under the 1940 Act at such time or take
such other actions as may be necessary to ensure the Trust’s activities comply with applicable law, which could force the Sponsor
to liquidate the Trust.

It may also become more
difficult for XRP to be traded, cleared and custodied as compared to other digital assets that are not considered to be offered and sold
as securities, which could in turn negatively affect the liquidity and general acceptance of XRP and cause users to migrate to other
digital assets. Further, if any other digital asset with widespread markets is determined to be offered and sold as a “security”
under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have
material adverse consequences for XRP as a digital asset due to negative publicity or a decline in the general acceptance of digital
assets. In addition, digital asset trading platforms that feature digital assets that are determined to be offered and sold as securities
may face penalties or be required to shut down if they do not have the licenses required to facilitate electronic markets in securities,
which could result in a reduction of the liquidity of XRP markets. As such, any determination that XRP or any other digital asset is
offered and sold as a security under federal or state securities laws may adversely affect the price of XRP and, as a result, the value
of the Shares.

To the extent that XRP
is deemed to fall within the definition of being offered and sold as a security under U.S. federal securities laws, the Trust and
the Sponsor may be subject to additional requirements under the Investment Company Act and the Advisers Act. The Sponsor or the Trust
may be required to register as an investment adviser under the Advisers Act.

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Such additional registration may result in extraordinary,
recurring and/or non-recurring expenses of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the
Trust determines not to comply with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any
such termination could result in the liquidation of the Trust’s XRP at a time that is disadvantageous to Shareholders.

There is a lack of consensus regarding the regulation of digital assets, including XRP.

Regulation of digital assets
continues to evolve across different jurisdictions worldwide, which may cause uncertainty and insecurity as to the legal and tax status
of a given