Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 96

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 96
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the security procedures in place for safeguarding the Trust’s XRP. Nevertheless, the security procedures cannot guarantee
the prevention of any loss due to a security breach, software defect or act of God that may be borne by the Trust. Access to the Trust’s
XRP could be restricted by natural events (such as an earthquake or flood) or human actions (such as a terrorist attack).

The security procedures and
operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor,
the XRP Custodians, or otherwise, and, as a result, an unauthorized party may obtain access to the Trust’s accounts with the XRP
Custodians, the private keys (and therefore XRP) or other data of the Trust. Additionally, outside parties may attempt to fraudulently
induce employees of the Sponsor, the XRP Custodians, or the Trust’s other service providers to disclose sensitive information in
order to gain access to the Trust’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 Custodians may be unable to anticipate these techniques or implement adequate
preventative measures.

An actual or perceived breach
of the Trust’s accounts with the XRP Custodians 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