Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 96

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 96
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 properly invest in robust ongoing operations
and controls of the Trust to minimize the risk of operating events, errors, or other forms of losses to the Shareholders. In addition,
the Trust may also fail to attract adequate liquidity in the secondary market due to such competition, resulting in a sub-standard number
of Authorized Participants willing to make a market in the Shares, which in turn could result in a significant premium or discount in
the Shares for extended periods and the Trust’s failure to reflect the performance of the price of XRP. There can be no assurance
that the Trust will grow to or maintain an economically viable size. There is no guarantee that the Sponsor will maintain a commercial
advantage relative to competitors offering similar products. Whether or not the Trust and the Sponsor are successful in achieving the
intended scale for the Trust may be impacted by a range of factors, such as the Trust’s timing in entering the market and its fee
structure relative to those of competitive products.

A loss of confidence or breach of the XRP Custodian 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 Coinbase Custody, 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 Coinbase Custody and another portion 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 the XRP.

The Trust expects Coinbase
Custody will custody most or all of its XRP holdings. A loss of confidence or breach of the XRP Custodian may adversely affect the Trust
and the value of an investment in the Shares.

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 Custodian as the XRP Custodian of the Trust’s XRP or the Prime Broker as the provider of prime brokerages to the
Trust. Transferring maintenance responsibilities of the Trust’s accounts with the XRP Custodian and the Prime Broker to another