Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 175

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 175
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 not assumed by the Sponsor in consideration for the Sponsor Fee.

The Sponsor may, in its sole
discretion, add or terminate prime brokers at any time. The Sponsor may, in its sole discretion, change the prime broker for the Trust,
but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such prime brokers.

These periodic holdings held
in the Trading Balance with the Prime Broker represent an omnibus claim on the Prime Broker’s XRP held on behalf of clients; these
holdings exist across a combination of omnibus hot wallets, omnibus cold wallets or in accounts in the Prime Broker’s name on a
trading venue (including third-party venues and the Prime Broker’s own execution venue) where the Prime Broker executes orders
to buy and sell XRP on behalf of clients (each such venue, a “Connected Trading Venue”). The Prime Broker is not required
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. 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