Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 87

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 87
---
 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.

<div align='center'>38</div>

Different from directly owning XRP.

Investors should be aware
that the market value of Shares of the Trust may not have a direct relationship with the prevailing price of XRP, and changes in the
prevailing price of XRP similarly will not necessarily result in a comparable change in the market value of Shares of the Trust. The
performance of the Trust will not reflect the specific return an investor would realize if the investor actually held or purchased XRP
directly. The differences in performance may be due to factors such as fees, transaction costs, operating hours of the Exchange
and Pricing Benchmark tracking risk. Investors will also forgo certain rights conferred by owning XRP directly, such as the right to
claim airdrops. See“Risk Factors — The inability to recognize the economic benefit of a ‘fork’ or an ‘airdrop’ could adversely impact an investment in the Trust.”

Pricing Benchmark tracking risk.

Although the Trust will attempt
to structure its portfolio so that investments track the Pricing Benchmark, the Trust may not achieve the desired degree of correlation
between its performance and that of 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