Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 97

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 97
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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 value of the Trust’s XRP held by
the XRP Custodian at the time the events giving rise to the liability occurred and (ii) the fair market value of the Trust’s
XRP held by the XRP Custodian at the time that the XRP Custodian notifies the Sponsor or Trustee in writing, or the Sponsor or the Trustee
otherwise has actual knowledge of the events giving rise to the liability.

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Under the Trust Agreement,
the Trustee and the Sponsor will not be liable for any liability or expense incurred absent gross negligence or willful misconduct on
the part of the Trustee or the Sponsor or breach by the Sponsor of the Trust Agreement, as the case may be. As a result, the recourse
of the Trust or the Shareholder to Trustee or the Sponsor may be