Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 95

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 95
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 loss of Trust assets or damage to the reputation of the Trust, each of which could result in a reduction in the price of the Shares.

Security breaches, cyber-attacks,
computer malware and computer hacking attacks have been a prevalent concern in relation to digital assets. Multiple thefts of XRP and
other digital assets from other holders have occurred in the past. Because of the decentralized process for transferring XRP, thefts
can be difficult to trace, which may make XRP a particularly attractive target for theft. Cyber security failures or breaches of one
or more of the Trust’s service providers (including but not limited to, the Benchmark Provider, the Transfer Agent, the Administrator,
or the XRP Custodians) have the ability to cause disruptions and impact business operations, potentially resulting in financial losses,
violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation
costs, and/or additional compliance costs.

The Trust and its service
providers’ use of internet, technology and information systems (including mobile devices and cloud-based service offerings) may
expose the Trust to potential risks linked to cyber-security breaches of those technological or information systems. Security breaches,
computer malware, ransomware and computer hacking attacks have been a prevalent concern in relation to digital assets. The Sponsor believes
that the Trust’s XRP held in the Trust’s accounts with the XRP Custodians will be an appealing target to hackers or malware
distributors seeking to destroy, damage or steal the Trust’s XRP or private keys and will only become more appealing as the Trust’s
assets grow. To the extent that the Trust, the Sponsor or the XRP Custodians are unable to identify and mitigate or stop new security
threats or otherwise adapt to technological changes in the digital asset industry, the Trust’s XRP may be subject to theft, loss,
destruction or other attack.

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The Sponsor has evaluated
the security procedures in place for safeguarding the Trust’s XRP. Nevertheless, the security procedures cannot guarantee
the prevention of any loss due to a security breach, software defect or act of God that may be borne by the Trust. Access to the Trust’s
XRP could be restricted by natural events (such as an earthquake or flood) or human actions (such as a terrorist attack).

The security procedures
and operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor,