Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 249

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 249
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1940 Act, and the Sponsor
may be required to register as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers
Act”). If the Sponsor determines not to comply with such additional regulatory and registration requirements, the Sponsor
will terminate the Trust. Any such termination could result in the liquidation of the Trust’s bitcoin at a time that is
disadvantageous to Shareholders.

To the extent that bitcoin is deemed to fall within
the definition of a “commodity interest” under the CEA, the Trust and the Sponsor may be subject to additional regulation
under the CEA and CFTC regulations. These additional requirements may result in extraordinary, recurring and/or nonrecurring expenses
of the Trust, thereby materially and adversely impacting the Shares. If the Sponsor and/or the Trust determines not to comply
with such additional regulatory and registration requirements, the Sponsor may terminate the Trust. Any such termination could
result in the liquidation of the Trust’s bitcoin at a time that is disadvantageous to Shareholders.

The SEC has recently proposed amendments to the custody
rules under Rule 406(4)-2 of the Advisers Act. The proposed rule changes would amend the definition of a “qualified custodian”
under Rule 206(4)-2(d)(6) and expand the current custody rule in 406(4)-2 to cover all digital assets, including bitcoin, and
related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements with respect
to the custody and storage of digital assets, including bitcoin. The Sponsor is studying the impact that such amendments may have
on the Trust and its arrangements with the Bitcoin Custodian and the Additional Bitcoin Custodian. It is possible that such amendments,
if adopted, could prevent the Bitcoin Custodian and the Additional Bitcoin Custodian from serving as service providers to the
Trust, or require potentially significant modifications to existing arrangements under the Custody Agreement and the Additional
Bitcoin Custody Agreement, which could cause the Trust to bear potentially significant increased costs. If the Sponsor is unable
to make such modifications or appoint successor service providers to fill the role that the Bitcoin Custodian or the Additional
Bitcoin Custodian currently play, the Trust’s operations (including in relation to creations and redemptions of Baskets
and the holding of bitcoin) could be negatively affected, the Trust could dissolve (including at a time that is potentially disadvantageous
to Shareholders), and the value of the Shares or an