Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 39

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 39
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 increases in the value of certain digital assets, including XRP, over the course of 2021, and multiple market observers asserted that digital assets were experiencing a “bubble.” These increases were followed by steep drawdowns throughout 2022 in digital asset trading prices, including for XRP. These episodes of rapid price appreciation followed by steep drawdowns have occurred multiple times throughout XRP’s history, including throughout the course of the past few years. During the period from January 1, 2021 to December 31, 2021, and the three years subsequent thereto, the closing of price of XRP ranged from $0.2258 to $1.8392 during 2021, marking a drawdown of 87.73%, from $0.3080 to $0.8781 during 2022, marking a drawdown of 64.93%, from $0.3380 to $0.8206 during 2023, marking a drawdown of 58.81%, and from $0.4198 to $2.1738 during 2024, marking a drawdown of.81.69% XRP prices have continued to exhibit volatility during calendar year 2025. During the three quarters ending September 30, 2025, the closing price of XRP ranged from $1.7945 to $3.5557, marking a drawdown of 49.54%.

Extreme volatility may persist, and the value of the Shares may significantly decline in the future without recovery. The digital asset markets may still be experiencing a bubble or may experience a bubble again in the future.For example, in the first half of 2022, each of Celsius Network, Voyager Digital Ltd., and Three Arrows Capital declared bankruptcy, resulting in a loss of confidence in participants of the digital asset ecosystem and negative publicity surrounding digital assets more broadly. In November 2022, FTX Trading Ltd. (“FTX”)one of the largest digital asset exchanges by volume at the time, halted customer withdrawals amid rumors of the company’s liquidity issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX’s CEO resigned, and FTX and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought civil securities and commodities fraud charges, against