Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 19

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 19
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 All of the Trust’s assets and private keys will be held in cold storage of the XRP Custodians
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 Custodians
carry insurance, the XRP Custodians’ 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 each XRP Custodians is shared among all of such XRP Custodian’s customers, is not specific
to the Trust or to customers holding XRP with such 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 Custodians, see “Custody of the Trust’s Assets” below.

The Marketing Agent

Foreside Global Services,
LLC (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 0.50% 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 Administrator will calculate the Sponsor Fee on a daily basis by applying a 0.50%
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 for
services it