Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 59

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 59
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 to certain protections for the Trust. Also, if Coinbase Custody or Coinbase Inc. become insolvent, suffer business failure, cease business operations, default on or fail to perform their obligations under their contractual agreements with the Trust, or abruptly discontinue the services they provide to the Trust for any reason, the Trust’s operations would be adversely affected.

The Trustee may not be able to find a party willing to serve as the custodian of the Trust’s XRP or as the Trust’s prime broker under the same terms as the current Custodial Services Agreement or Prime Broker Agreement or at all. To the extent that the Trustee is not able to find a suitable party willing to serve as the custodian or prime broker, the Trustee may be required to terminate the Trust and liquidate the Trust’s XRP. In addition, to the extent that the Trustee finds a suitable party but must enter into a modified Custodial Services Agreement or Prime Broker Agreement that is less favorable for the Trust or Trustee, the value of the Shares could be adversely affected. If the Trust is unable to find a replacement prime broker, its operations could be adversely affected.

The XRP Custodian and Prime Broker may act in the same or similar capacity for other competing products.

Currently, the number of digital assets intermediaries with the reputation and operational capability to serve as custodian and/or prime broker to the Trust or other competing products is limited. The XRP Custodian and Prime Broker may act in the same or similar capacity for other competing products, including exchange-traded products offering exposure to the spot XRP market or other digital assets. The Trust is therefore subject to risks associated with these competing products utilizing the same service providers for XRP custodial and prime brokerage services.

To the extent that exchange-traded products offering exposure to the spot XRP market or other digital assets utilize substantially the same service providers for XRP custodial and prime brokerage services, this industry concentration may result in the development of fewer other digital assets intermediaries with the reputation and operational capability to provide XRP custodial and prime brokerage services to the Trust or other competing products. This, in turn, could make it difficult for the Trust to find and appoint a replacement XRP custodian or prime broker, to the extent the Sponsor deems such action necessary.

This industry concentration also may have the effect of magnifying the risks associated with the XRP Custodian and Prime Broker, as operational disruptions or adverse developments impacting the XRP Custodian or the Prime Broker may be felt on an industry-wide