Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 88

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 88
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 the Pricing Benchmark and thus may not achieve its investment objective. The difference in performance
may be due to factors such as fees, transaction costs, redemptions of, and subscriptions for, Shares, pricing differences or the cost
to the Trust of complying with various new or existing regulatory requirements.

Liquidity risk.

The ability of the Trust or
an XRP Counterparty to buy or sell XRP may be adversely affected by limited trading volume, lack of a market maker in the digital asset
markets, or legal restrictions. It is also possible that an XRP spot market or regulatory or governmental authority may suspend or restrict
trading in XRP altogether. Therefore, it may not always be possible to execute a buy or sell order at the desired price or to liquidate
an open position due to market conditions on spot markets, regulatory issues affecting XRP or other issues affecting counterparties.
XRP is a new asset with a very limited trading history. Therefore, the markets for XRP may be less liquid and more volatile than other
markets for more established products.

Shares of the Trust are intended
to be listed and traded on the Exchange. There is no certainty that there will be liquidity available on the Exchange or that the market
price will be in line with the NAV or the Principal Market NAV at any given time. There is also no guarantee that once the Shares of
the Trust are listed or traded on the Exchange that they will remain so listed or traded.

If demand for Shares of the
Trust exceeds the availability of XRP from exchanges and the Trust is not able to secure additional supply, Shares of the Trust may trade
at a premium to their underlying value. Investors who pay a premium risk losing such premium if demand for the Shares of the Trust abates
or the Sponsor is able to source more XRP. In such circumstances, Shares of the Trust could also trade at a discount.

Prior to their issuance, there
was no public market for Shares of the Trust.

Counterparty risk.

The Sponsor, Trust, XRP Counterparty,
and Authorized Participants are subject to counterparty risk. An XRP Counterparty may fail to deliver to the Trust’s accounts with
the XRP Custodians the amount of XRP associated with a creation order, an XRP Counterparty may fail to deliver to the Trust’s account
at the Cash Custodian the amount of cash associated with a redemption order, or the Cash Custodian may fail to deliver to the Authorized
Participant at settlement the cash proceeds from the sale