Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 97

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 97
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 loss, the only source of recovery for the Trust may be limited to the relevant custodian or, to the extent identifiable, other responsible
third parties (for example, a thief or terrorist), any of which may not have the financial resources (including liability insurance coverage)
to satisfy a valid claim of the Trust. Similarly, as noted below, the XRP Custodians have extraordinarily limited liability to the Trust,
which may adversely affect the Trust’s ability to seek recovery from them, even when they are at fault.

It may not be possible, either
because of a lack of available policies or because of prohibitive cost, for the Trust to obtain insurance that would cover losses of
the Trust’s XRP. If an uninsured loss occurs or a loss exceeds policy limits, the Trust could lose all of its assets.

The Trust’s XRP Custodians could become insolvent.

The Trust’s assets will
be held in one or more accounts maintained for the Trust by the XRP Custodians and may in the future be held at other custodian banks
which may be located in other jurisdictions. The XRP Custodians are not depository institutions as they are not insured by the FDIC. The
insolvency of the any of the XRP Custodians or of any broker, custodian bank or clearing corporation used by the XRP Custodians, may
result in the loss of all or a substantial portion of the Trust’s assets or in a significant delay in the Trust having access to
those assets. Additionally, custody of digital assets presents inherent and unique risks relating to access loss, theft and means of
recourse in such scenarios. These risks are applicable to the Trust’s use of XRP Custodians.

The Trust may change the custodial
arrangements described in this Prospectus at any time without notice to Shareholders.

The Trust is subject to risks due to its concentration of investments in a single asset.

Unlike other funds that may
invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class. This
concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with XRP and digital assets.
By concentrating its investment strategy solely in XRP, any losses suffered as a result of a decrease in the value of XRP can be expected
to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets
that were diversified.

The