Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 100

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 100
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 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.

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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 Custodial Services Agreements, or as the
Prime Broker under the same terms as the current Prime Broker Agreement. To the extent that Sponsor is not able to find a suitable party
willing to serve as an XRP Custodian or the Prime Broker, as applicable, the Sponsor may be required to terminate the Trust and liquidate
the Trust’s XRP. In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified custodial
services agreement or prime broker agreement that costs more, the value of the Shares