Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 98

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 98
---
 of the price of XRP. There can be no assurance
that the Trust will grow to or maintain an economically viable size. There is no guarantee that the Sponsor will maintain a commercial
advantage relative to competitors offering similar products. Whether or not the Trust and the Sponsor are successful in achieving the
intended scale for the Trust may be impacted by a range of factors, such as the Trust’s timing in entering the market and its fee
structure relative to those of competitive products.

A loss of confidence in, or breach of, the XRP Custodians may adversely affect the Trust and the value of an investment in the Shares.

Custody and security services
for the Trust’s XRP are provided by the XRP Custodians, although the Trust may retain one or more additional XRP custodians at
a later date. XRP held by the Trust may be custodied or secured in different ways (for example, a portion of the Trust’s XRP holdings
may be custodied by XRP Custodians and by another third-party custodian). Over time, the Trust may change the custody or security arrangement
for all or a portion of its holdings. The Sponsor will decide the appropriate custody and arrangements based on, among other factors,
the availability of experienced XRP custodians and the Trust’s ability to securely safeguard its XRP.

The Trust expects that the
XRP Custodians will custody most or all of its XRP holdings. A loss of confidence in or breach of the XRP Custodians may adversely affect
the Trust and the value of an investment in the Shares.

<div align='center'>44</div>

The Sponsor may need to find and appoint a replacement custodian or prime broker quickly, which could pose a challenge to the safekeeping of the Trust’s XRP.

The Sponsor could decide to
replace the XRP Custodians as the custodians of the Trust’s XRP and could decide to replace the Prime Broker as the provider of
prime brokerages to the Trust. Transferring maintenance responsibilities of the Trust’s accounts with the XRP Custodians and the
Prime Broker to another party will likely be complex and could subject the Trust’s XRP to the risk of loss during the transfer,
which could have a negative impact on the performance of the Shares or result in loss of the Trust’s assets.

The Sponsor may not be able
to find a party willing to serve as an XRP Custodian under the same terms as the current Cust