Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 18

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 18
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 remainder of the Vault Balance
held as a “Hot Vault Balance.” All of the Trust’s assets and private keys will be held in cold storage of the XRP Custodian
on an ongoing basis, but a portion of the Trust’s assets may be held in hot trading wallets, from time to time, in connection with
the settlement of a creation or redemption transaction.

After diligence investigation,
the Sponsor believes that the XRP Custodian’s policies, procedures, and controls for safekeeping, exclusively possessing, and controlling
the Trust’s XRP holdings are consistent with industry best practices to protect against theft, loss, and unauthorized and accidental
use of the private keys.

Although the XRP Custodian
carries insurance, the XRP Custodian’s insurance does not cover any loss in value to XRP and only covers losses caused by certain
events such as fraud or theft and, in such covered events, it is unlikely the insurance would cover the full amount of any losses incurred
by the Trust. The insurance maintained by the XRP Custodian is shared among all of the XRP Custodian’s customers, is not specific
to the Trust or to customers holding XRP with the XRP Custodian, and may not be available or sufficient to protect the Trust from all
possible losses or sources of losses.

For more information on the
XRP Custodian, see “Custody of the Trust’s Assets” below.

The Marketing Agent

[●] (the “Marketing
Agent”) is responsible for reviewing and approving the marketing materials prepared by the Sponsor for compliance with applicable
SEC and Financial Industry Regulatory Authority (“FINRA”) advertising laws, rules, and regulations.

The Trust’s Fees and Expenses

The Trust will pay the
unitary Sponsor Fee of [●]% of the Trust’s NAV (the “Sponsor Fee”). The Sponsor Fee is paid by the Trust to the
Sponsor as compensation for services performed under the Trust Agreement.

The Sponsor Fee will accrue
daily and will be payable in XRP weekly in arrears. The Sponsor will calculate the Sponsor Fee on a daily basis by applying a [●]%
annualized rate to the Trust’s NAV, and the amount of XRP payable in respect of each daily accrual shall be determined by reference
to the Pricing Benchmark. The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary
expenses) out of the Sponsor Fee. Operating expenses assumed by the Sponsor include (i) the fee payable to the Marketing Agent