Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 206

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 206
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 including bitcoin.

Digital asset treasury companies are a relatively
new phenomenon and it is impossible to predict all of the risks they could pose to the Trust. On the one hand, digital asset treasury
companies may increase procyclical dynamics in the market because they may purchase digital assets, such as bitcoin, when prices
are rising and they may sell such assets when prices are decreasing, potentially making bitcoin more expensive in a rising market
and then causing downward pressure on bitcoin prices in a falling market (causing prices to fall faster than they otherwise would).
Digital asset treasury companies could cause greater volatility in digital asset markets, including markets for bitcoin. Negative
events or sentiment surrounding digital asset treasury companies could affect the market for bitcoin. On the other hand, digital
asset treasury companies may compete with the Trust in the marketplace as a perceived alternative means of achieving exposure to
the price of bitcoin (to a greater or lesser extent) through investing in securities. The foregoing or similar events involving
digital asset treasury companies could adversely affect holders of Shares in the Trust.

The value of the Shares is subject to a number of factors relating
to the fundamental investment characteristics of bitcoin as a digital asset, including the fact that digital assets are bearer
instruments and loss, theft, destruction, or compromise of the associated private keys could result in permanent loss of the asset,
and the capabilities and development of blockchain technologies such as the bitcoin blockchain. 

Digital assets such as bitcoin were only introduced within the past
16 years, and the value of the Shares is subject to a number of factors over time relating to the capabilities and development
of blockchain technologies, such as the recentness of their development, their dependence on the internet and other technologies,
their dependence on the role played by users, developers and miners and the

23

potential for malicious activity. Given the recentness of the development
of digital asset networks, digital assets may not function as intended and parties may be unwilling to use digital assets, which
would dampen the growth, if any, of digital asset networks. Because bitcoin is a digital asset, the value of the Shares is subject
to a number of factors relating to the fundamental investment characteristics of digital assets, including the fact that digital
assets are bearer instruments and loss, theft, compromise, or destruction of the associated private keys could result in permanent
loss of the asset.

The Bitcoin network, including the cryptographic and algorithmic protocols
associated with the operation of the Bitcoin Blockchain, has only been in existence since 2009, and bitcoin markets