Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 117

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 117
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, Shareholders will not have the regulatory
protections provided to investors in CEA-regulated instruments or commodity pools.

Future legal or regulatory developments may negatively
affect the value of bitcoin or require the Trust or the Sponsor to become registered with the SEC or CFTC, which may cause the
Trust to liquidate.

Current and future legislation, SEC and CFTC rulemaking,
and other regulatory developments may impact the manner in which bitcoin are treated for classification and clearing purposes.
In particular, although bitcoin is currently understood to be a commodity when transacted on a spot basis, bitcoin itself in the
future might be classified by the CFTC as a “commodity interest” under the CEA, subjecting all transactions in bitcoin
to full CFTC regulatory jurisdiction. Alternatively, in the future bitcoin might be classified by the SEC as a “security”
under U.S. federal securities laws. The Sponsor and the Trust cannot be certain as to how future regulatory developments will
impact the treatment of bitcoin under the law. In the face of such developments, the required registrations and compliance steps
may result in extraordinary, nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust in response to
the changed regulatory circumstances, the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.

65

The SEC has stated that certain digital assets may
be considered “securities” under the federal securities laws. The test for determining whether a particular digital
asset is a “security” is complex and the outcome is difficult to predict. If bitcoin is in the future determined to
be a “security” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court
of law or otherwise, it would likely have material adverse consequences for the value of bitcoin. For example, it may become more
difficult or impossible for bitcoin to be traded, cleared and custodied in the United States as compared to other digital assets
that are not considered to be securities, which could in turn negatively affect the liquidity and general acceptance of bitcoin
and cause users to migrate to other digital assets.

To the extent that bitcoin is determined to be a security,
the Trust and the Sponsor may also be subject to additional regulatory requirements, including under the 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