Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 86

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 86
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 difficult to predict. Supply and demand changes
rapidly and is affected by a variety of factors, including regulation and general economic trends, such as interest rates, availability
of credit, credit defaults, inflation rates and economic uncertainty. All investments made by the Trust will risk the loss of capital.
Therefore, an investment in the Trust involves a high degree of risk, including the risk that the entire amount invested may be lost.
No guarantee or representation is made that the Trust’s investment program will be successful, that the Trust will achieve its investment
objective or that there will be any return of capital invested to investors in the Trust, and investment results may vary.

The NAV or the Principal Market NAV may not always correspond to the market price of XRP.

The NAV or the Principal Market
NAV of the Trust will change as fluctuations occur in the market price of the Trust’s XRP holdings. Shareholders should be aware
that the public trading price per share may be different from the NAV for a number of reasons, including price volatility and the fact
that supply and demand forces at work in the secondary trading market for Shares are related, but not identical, to the supply and demand
forces influencing the market price of XRP as reflected in the Pricing Benchmark.

An Authorized Participant may
be able to create or redeem a Basket at a discount or a premium to the public trading price per Share and the Trust will therefore maintain
its intended fractional exposure to a specific amount of XRP per share.

Deviations between the Trust’s NAV and NAV per Share versus the Trust’s Principal Market NAV and Principal Market NAV per Share may occur.

The Trust uses the Pricing
Benchmark to determine its NAV and NAV per Share. However, for financial statement purposes, the Trust’s XRP is carried at fair
value as required by GAAP, which requires a determination based on the price of XRP on principal market as identified by the Trust as
set for in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10,
Fair Value Measurements and Disclosures (“ASC 820-10”). See “Net Asset Value Determinations” below.
The Trust expects the applicable NAV and NAV per Share and corresponding Principal Market NAV and Principal Market NAV to accurately
reflect the price of XRP. However, deviations can occur between the prices from the principal market chosen by the GAAP fair value
methodology and Pricing Benchmark, which takes into consideration prices from all of the markets used to calculate the Pricing Benchmark.

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