Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 52

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 52
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 to uncontrolled accounts. To the extent that the Trust is unable
to successfully seek redress for such error or theft, such loss could adversely affect an investment in Trust.

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The loss or destruction of a private key required to access XRP may be irreversible.

Digital assets, including XRP,
are controllable only by the possessor of both the unique public key and private key or keys relating to the “digital wallet”
in which the digital asset is held. Private keys must be safeguarded and kept private in order to prevent a third party from accessing
the digital asset held in such wallet. To the extent a private key is lost, destroyed or otherwise compromised and no backup of the private
key is accessible, the Trust will be unable to access, and will effectively lose, the XRP held in the related digital wallet. In addition,
if the Trust’s private keys are misappropriated and the Trust’s XRP holdings are stolen, including from or by the XRP Custodian,
the Trust could lose some or all of its XRP holdings, which would adversely impact an investment in the Shares of the Trust. Any loss
of private keys relating to digital wallets used to store the Trust’s XRP would adversely affect the value of the Shares.

An investment in the Trust is not a deposit and is not FDIC-insured. Shareholders’ limited rights of legal recourse against the Trust, Trustee, Sponsor, Administrator, Prime Broker and Custodian expose the Trust and its Shareholders to the risk of loss of the Trust’s XRP for which no person or entity is liable.

The Trust is not a banking
institution or otherwise a member of the FDIC or Securities Investor Protection Corporation (“SIPC”) and, therefore, deposits
held with or assets held by the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions.
In addition, neither the Trust nor the Sponsor insure the Trust’s XRP.

While the XRP Custodian has
advised the Sponsor that it has insurance coverage up to $320 million that covers losses of the digital assets it custodies on behalf
of its clients, including the Trust’s XRP, resulting from theft, Shareholders cannot be assured that the XRP Custodian will maintain
adequate insurance, that such coverage will cover losses with respect to the Trust’s XRP, or that sufficient insurance proceeds
will be available to cover the Trust’s losses in full. The XRP Custodian’s insurance