Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 58

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 58
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RP Custodian and Prime Broker. The Prime Broker Agreement and Custodial Services Agreement provide
that neither the Sponsor, the Trustee, nor their affiliates shall have any obligation of any kind or nature whatsoever, by guaranty, enforcement
or otherwise, with respect to the performance of any the Trust’s obligations, agreements, representations or warranties under the
Prime Broker Agreement or Custodial Services Agreement or any transaction thereunder. Consequently, a loss may be suffered with respect
to the Trust’s XRP that is not covered by the XRP Custodian’s insurance and for which no person is liable in damages. As a
result, the recourse of the Trust or the Shareholders, under applicable law, is limited.

Loss of a critical banking relationship for, or the failure of a bank used by, the Prime Broker could adversely impact the Trust’s ability to create or redeem Baskets, or could cause losses to the Trust.

To the extent that the Trust
or Prime Broker faces difficulty establishing or maintaining banking relationships, the loss of the Trust or Prime Broker’s banking
partners, the imposition of operational restrictions by these banking partners and the inability for the Trust or the Prime Broker to
utilize other financial institutions may result in a disruption of creation and redemption activity of the Trust or the Prime Broker,
or cause other operational disruptions or adverse effects for the Trust or the Prime Broker. In the future, it is possible that the Trust
or the Prime Broker could be unable to establish accounts at new banking partners or establish new banking relationships, or that the
banks with which the Trust or the Prime Broker is able to establish relationships may not be as large or well-capitalized or subject to
the same degree of prudential supervision as the existing providers.

The Trust could also suffer
losses in the event that a bank in which the Trust holds assets fails, becomes insolvent, enters receivership, is taken over by regulators,
enters financial distress, or otherwise suffers adverse effects to its financial condition or operational status. Recently, some banks
have experienced financial distress. For example, on March 8, 2023, the California Department of Financial Protection and Innovation
(“DFPI”) announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon Valley Bank,
(“SVB”), was closed by the DFPI, which appointed the FDIC as receiver. Similarly, on March 12, 2023, the New York
Department of Financial Services took possession of Signature Bank