Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 30

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 30
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 state, local or foreign tax law consequences (or any consequences under any U.S. federal tax law other than U.S.
federal income tax law) that may apply to an investment in Shares. Purchasers of Shares are urged to consult their own tax advisers
with respect to all U.S. federal, state, local and foreign tax law considerations potentially applicable to their investment in
Shares.

For purposes of this discussion, a “U.S. Shareholder”
is a Shareholder that is for U.S. federal income tax purposes:

    ●
    an individual who is a citizen or resident of the United States;

    ●
    a corporation (or entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under
    the laws of the United States, any state thereof or the District of Columbia;

    ●
    an estate, the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source;
    or

    ●
    a trust, if a court within the United States is able to exercise primary supervision over the administration of the trust
    and one or more United States persons have the authority to control all substantial decisions of the trust.

If a partnership or other entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds Shares, the tax treatment of a partner generally depends upon the status of the partner
and the activities of the partnership. If you are a partner of a partnership holding Shares, the discussion below may not be applicable
and we urge you to consult your own tax adviser for the U.S. federal income tax implications of the purchase, ownership and disposition
of such Shares.

18

Taxation of the Trust

The Sponsor and the Trustee will treat the Trust as a “grantor
trust” for U.S. federal income tax purposes. In the opinion of Clifford Chance US LLP, although not free from doubt due to
the lack of directly governing authority, the Trust should be classified as a “grantor trust” for U.S. federal income
tax purposes (and the following discussion assumes such classification). As a result, the Trust itself should not be subject to
U.S. federal income tax. Instead, the Trust’s income and expenses should “flow through” to the Shareholders,
and the Trustee will report the Trust’s income, gains, losses and deductions to the Internal Revenue Service (“IRS”)
on that basis. The opinion of Clifford Chance US LLP is not