Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 171

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 171
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 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 has represented to the
Trust that it is unable to name the NBMMs due to confidentiality restrictions.

Pursuant to the Prime Broker
Agreement, the Trust may engage in purchases or sales of XRP by placing orders with the Prime Broker. The Prime Broker will route orders
placed by the Sponsor through the Prime Broker’s execution platform (the “Trading Platform”) to a Connected Trading
Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at each Connected Trading
Venue to which it is routed. The Prime Broker Agreement provides that the Prime Broker is subject to certain conflicts of interest, including:
(i) the Trust’s orders may be routed to the Prime Broker’s own execution venue where the Trust’s orders may be
executed against other customers of the Prime Broker or with Coinbase acting