Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 57

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 57
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 XRP or cash in the Trust’s Trading Balance in segregation. Within the Trading Balance, the Prime Broker Agreement
provides that the Trust does not have an identifiable claim to any particular XRP (and cash). Instead, the Trust’s Trading Balance
represents an entitlement to a pro rata share of the XRP (and cash) the Prime Broker has allocated to the omnibus wallets the Prime Broker
holds, as well as the accounts in the Prime Broker’s name that the Prime Broker maintains at Connected Trading Venues (the “Connected
Trading Venue”) (which are typically held on an omnibus, rather than segregated, basis). If the Prime Broker suffers an insolvency
event, there is a risk that the Trust’s assets held in the Trading Balance could be considered part of the Prime Broker’s
bankruptcy estate and the Trust could be treated as a general unsecured creditor of the Prime Broker, which could result in losses for
the Trust and Shareholders. Moreover, in the event of the bankruptcy of the Prime Broker, an automatic stay could go into effect and protracted
litigation could be required in order to recover the assets held with the Prime Broker, all of which could significantly and negatively
impact the Trust’s operations and the value of the Shares.

Under the Trust Agreement,
the Trustee and the Sponsor will not be liable for any liability or expense incurred, including, without limitation, as a result of any
loss of XRP by the XRP Custodian or Prime Broker, absent willful misconduct, gross negligence, reckless disregard or bad faith on the
part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case may be. As a result, the recourse of the
Trust or the Shareholders to the Trustee or the Sponsor, including in the event of a loss of XRP by the XRP Custodian or Prime Broker,
is limited.

The Shareholders’ recourse
against the Sponsor, the Trustee, and the Trust’s other service providers for the services they provide to the Trust, including,
without limitation, those relating to the holding of XRP or the provision of instructions relating to the movement of XRP, is limited.
For the avoidance of doubt, neither the Sponsor, the Trustee, nor any of their affiliates, nor any other party has guaranteed the assets
or liabilities, or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust,
including, without limitation, the X