Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 99

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 99
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 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 of the price of XRP. There can be no assurance
that the Trust will grow to or maintain an economically viable size. There is no guarantee that the Sponsor will maintain a commercial
advantage relative to competitors offering similar products. Whether or not the Trust and the Sponsor are successful in achieving the
intended scale for the Trust may be impacted by a range of factors, such as the Trust’s timing in entering the market and its fee
structure relative to those of competitive products.

A loss of confidence in, or breach of, the XRP Custodians may adversely affect the Trust and the value of an investment in the Shares.

C