Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 29

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 29
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curring expenses.                                                                            |

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Risks Associated with the Tax Treatment of XRP

| ● | Shareholders could incur a tax liability without an associated 
 distribution of the Trust.                                     |

| ● | The tax treatment of XRP and transactions involving XRP for 
 state and local tax purposes is not settled.                |

| ● | A hard “fork” of the XRP Ledger could result in 
 Shareholders incurring a tax liability.         |

Other Risks

| ● | The Exchange on which the Shares are listed may halt trading                                
 in the Trust’s Shares, which would adversely impact a Shareholder’s ability to sell Shares. |

| ● | The market infrastructure of the XRP spot market could result                                                                        
 in the absence of active Authorized Participants able to support the trading activity of the Trust, which would affect the liquidity 
 of the Shares in the secondary market and make it difficult to dispose of Shares.                                                    |

| ● | Shareholders that are not Authorized Participants may only                                                                                
 purchase or sell their Shares in secondary trading markets, and the conditions associated with trading in secondary markets may adversely 
 affect Shareholders’ investment in the Shares.                                                                                            |

| ● | The Sponsor is leanly staffed and relies heavily on key personnel.                                                               
 The departure of any such key personnel could negatively impact the Trust’s operations and adversely impact an investment in the 
 Trust.                                                                                                                           |

| ● | Shareholders do not have the rights enjoyed by investors in                                                                          
 certain other vehicles and may be adversely affected by a lack of statutory rights and by limited voting and distribution rights. In 
 certain circumstances, Shareholders may vote to appoint a successor Sponsor following the Voluntary Withdrawal of the Sponsor, or to 
 continue the Trust in certain instances of dissolution of the Trust. Shareholders shall otherwise have no voting rights with respect 
 to the Trust.                                                                                                                        |

| ● | The liability of the Sponsor and the Trustee is limited, and                                                         
 the value of the Shares will be adversely affected if the Trust is required to indemnify the Trustee or the Sponsor. |

| ● | Due to the increased use of technologies, intentional and                                                                                
 unintentional cyber-attacks pose operational and information security risks, the occurrence of which can negatively impact an investment 
 in the Trust.                                                                                                                            |

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RISK FACTORS</div>

You should consider carefully the risks described below before making an investment decision. You should also refer to the other information included in this Prospectus