Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 92

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 92
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 to digital assets. The Sponsor believes that the Trust’s
XRP held in the Trust’s account with the XRP Custodian 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 Custodian is 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,
the XRP Custodian, or otherwise, and, as a result, an unauthorized party may obtain access to the Trust’s account with the XRP Custodian,
the private keys (and therefore XRP) or other data of the Trust. Additionally, outside parties may attempt to fraudulently induce employees
of the Sponsor, the XRP Custodian, or the Trust’s other service providers to disclose sensitive information in order to gain access
to the Trust’s infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems
change frequently, or may be designed to remain dormant until a predetermined event and often are not recognized until launched against
a target, the Sponsor and the XRP Custodian may be unable to anticipate these techniques or implement adequate preventative measures.

An actual or perceived breach
of the Trust’s account with the XRP Custodian could harm the Trust’s operations, result in partial or total loss of the Trust’s
assets, damage the Trust’s reputation and negatively affect the market perception of the effectiveness of the Trust, all of which
could in turn reduce demand for the Shares, resulting in a reduction in the price of the Shares. The Trust may also cease operations,
the occurrence of which could similarly result in a reduction in the price of the Shares.

While the