Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 63

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 63
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 make it difficult for the Trust to find and appoint a replacement XRP custodian or prime broker, to the extent the
Sponsor deems such action necessary.

This industry concentration
also may have the effect of magnifying the risks associated with the XRP Custodian and Prime Broker, as operational disruptions or adverse
developments impacting the XRP Custodian or the Prime Broker may be felt on an industry-wide basis. A loss of confidence or breach of
the XRP Custodian or Prime Broker may adversely affect not only the Trust and the value of an investment in the Shares, but also these
competing products utilizing the same service providers for XRP custodial and prime brokerage services and, more generally, exchange-traded
products offering exposure to the spot XRP market or other digital assets. These industry-wide adverse effects could result in a broader
loss of confidence in exchange-traded products offering exposure to the spot XRP market or other digital assets, which could further impact
the Trust and the value of an investment in the Shares.

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The Prime Broker routes orders through Connected Trading Venues in connection with trading services under the Prime Broker Agreement. The loss or failure of any such Connected Trading Venues may adversely affect the Prime Broker’s business and cause losses for the Trust.

In connection with trading
services under the Prime Broker Agreement, the Prime Broker routinely routes customer orders to Connected Trading Venues, which are third-party
exchanges or other trading venues (including the trading venue operated by the Prime Broker). In connection with these activities, the
Prime Broker may hold XRP with such Connected Trading Venues in order to effect customer orders, including the Trust’s orders. However,
the Prime Broker has represented to the Sponsor that no customer cash is held at Connected Trading Venues. If the Prime Broker were to
experience a disruption in the Prime Broker’s access to these Connected Trading Venues, the Prime Broker’s trading services
under the Prime Broker Agreement could be adversely affected to the extent that the Prime Broker is limited in its ability to execute
order flow for its customers, including the Trust. In addition, while the Prime Broker has policies and procedures to help mitigate the
Prime Broker’s risks related to routing orders through third-party trading venues, if any of these third-party trading venues experience
any technical, legal, regulatory, or other adverse events, such as shutdowns, delays, system failures, suspension of withdrawals, illiquidity,
insolvency, or loss of customer assets,