Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 97

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 97
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 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 XRP Custodians could become insolvent.

The Trust’s assets
will be held in one or more accounts maintained for the Trust by the XRP Custodians and may in the future be held at other custodian
banks which may be located in other jurisdictions. The XRP Custodians are not depository institutions as they are not insured by the
FDIC. The insolvency of the any of the XRP Custodians or of any broker, custodian bank or clearing corporation used by the XRP Custodians,
may result in the loss of all or a substantial portion of the Trust’s assets or in a significant delay in the Trust having access
to those assets. Additionally, custody of digital assets presents inherent and unique risks relating to access loss, theft and means
of recourse in such scenarios. These risks are applicable to the Trust’s use of XRP Custodians.

The Trust may change the custodial
arrangements described in this Prospectus at any time without notice to Shareholders.

The Trust is subject to risks due to its concentration of investments in a single asset.

Unlike other funds that may
invest in diversified assets, the Trust’s investment strategy is concentrated in a single asset within a single asset class. This
concentration maximizes the degree of the Trust’s exposure to a variety of market risks associated with XRP and digital assets.
By concentrating its investment strategy solely in XRP, any losses suffered as a result of a decrease in the value of XRP can be expected
to reduce the value of an interest in the Trust and will not be offset by other gains if the Trust were to invest in underlying assets
that were diversified.

The lack of active trading markets for the Shares may result in losses on Shareholders’ investments at the time of disposition of Shares.

Although Shares of the Trust
are expected to be publicly listed and traded on an exchange, there can be no guarantee that an active trading market for the Shares
will develop or be maintained. If Shareholders need to sell their Shares at a time when no active market for them exists, the price Shareholders
receive for their Shares, assuming that Shareholders are able to sell them, may be