Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 176

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 176
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 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 as principal; (ii) the beneficial identity of the counterparty
purchaser or seller with respect to the Trust’s orders may be unknown and therefore may inadvertently be another client of the
Prime Broker; (iii) the Prime Broker does not engage in front-running, but is aware of the Trust’s orders or imminent orders
and may execute a trade for its own inventory (or the account of an affiliate) while in possession of that knowledge; and (iv) the
Prime Broker may act in a principal capacity with respect to certain orders. As a result