Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 97

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 97
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 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
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 the XRP Custodian under the same terms as the current Custodial Services Agreement, 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 the XRP Custodian or 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 could be adversely affected.

Lack of recourse.

The XRP Custodian has limited
liability, impairing the ability of the Trust to recover losses relating to its XRP and any recovery may be limited, even in the event
of fraud. In addition, the XRP Custodian may not be liable for any delay in performance of any of its custodial obligations by reason
of any cause beyond its reasonable control, including force majeure events, war or terrorism, and may not be liable for any system failure
or third-party penetration of its systems. As a result, the recourse of the Trust to Custodian may be limited.

Under the Custodial Services
Agreement, the XRP Custodian’s liability is limited to the greater of (i) the market