Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 93

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 93
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’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 Sponsor has established
business continuity plans and systems that it believes are reasonably designed to prevent cyber-attacks, there are inherent limitations
in such plans and systems including the possibility that certain risks have not been, or cannot be, identified. Service providers may
have limited indemnification obligations to the Trust, which could be negatively impacted as a result.

If the Trust’s holdings
of XRP are lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the
financial resources, including insurance coverage, sufficient to satisfy the Trust’s claim. For example, as to a particular event
of loss, the only source of recovery for the Trust may be limited to the relevant custodian or, to the extent identifiable, other responsible
third parties (for example, a thief or terrorist), any of which may not have the financial resources (including liability insurance coverage)
to satisfy a valid claim of the Trust. Similarly, as noted below, the Trust’s Custodian has extraordinarily limited liability to
the Trust, which will adversely affect the Trust’s ability to seek recovery from them, even when they are at fault.

It may not be possible, either
because of a lack of available policies or because of prohibitive cost, for the Trust to obtain insurance that would cover losses of the
Trust’s XRP. If an uninsured loss occurs or a loss exceeds policy limits, the Trust could lose all of its assets.

The Trust’s Custodian could become insolvent.

The Trust’s assets
will be held in one or more accounts maintained for the Trust by the XRP Custodian and may in the future be held at other custodian banks
which