Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 176

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 176
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 Prime Broker holds the XRP credited to the Trust’s Trading Balance. Within
the Trust’s Trading Balance, the Prime Broker Agreement provides that the Trust does not have an identifiable claim to any particular
XRP (and cash). Instead, the Trust’s Trading Balance represents an entitlement to a pro rata share of the XRP (and cash) the Prime
Broker holds on behalf of customers who hold similar entitlements against the Prime Broker. In this way, the Trust’s Trading Balance
represents an omnibus claim on the Prime Broker’s XRP (and cash) held on behalf of the Prime Broker’s customers.

Within such omnibus hot and
cold wallets and accounts, the Prime Broker has represented to the Sponsor that it keeps the majority of assets in cold wallets, to promote
security, while the balance of assets are kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor has no control over,
and for security reasons the Prime Broker does not disclose to the Sponsor, the percentage of XRP that the Prime Broker holds for customers
holding similar entitlements as the Trust which are kept in omnibus cold wallets, as compared to omnibus hot wallets or omnibus accounts
in the Prime Broker’s name on a trading venue. The Prime Broker has represented to the Sponsor that the percentage of assets maintained
in cold versus hot storage is determined by ongoing risk analysis and market dynamics, in which the Prime Broker attempts to balance
anticipated liquidity needs for its customers as a class against the anticipated greater security of cold storage.

The Prime Broker is not required
by the Prime Broker Agreement to hold any of the XRP in the Trust’s Trading Balance in cold storage or to hold any such XRP in
segregation, and neither the Trust nor the Sponsor can control the method by which the Prime Broker holds the XRP credited to the Trust’s
Trading Balance.

To the extent the Trust sells
XRP through the Prime Broker, the Trust’s orders will be executed at Connected Trading Venues that have been approved in accordance
with the Prime Broker’s due diligence and risk assessment process. The Prime Broker has represented that its due diligence on Connected
Trading Venues include reviews conducted by the legal, compliance, security, privacy and finance and credit-risk teams. The Connected
Trading Venues, which are subject to change from time to time, currently include Bitstamp, LMAX, Kraken, the exchange operated by the
Prime Broker, as well as four additional non-bank market makers (“NBMMs”). The Prime Broker