Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 196

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 196
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 Vault Balance. If the Additional Bitcoin Custodian
fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem Baskets, which
could force the Trust to liquidate or adversely affect the price of the Shares.

On March 22, 2023, Coinbase, Inc., which is an affiliate of the Additional
Bitcoin Custodian, and its parent (such parent, “Coinbase Global” and together with Coinbase Inc., the “Relevant
Coinbase Entities”) received a “Wells Notice” from the SEC staff stating that the SEC staff made a “preliminary
determination” to recommend that the SEC file an enforcement action against the Relevant Coinbase Entities alleging violations
of the federal securities laws, including the Exchange Act and the Securities Act. According to Coinbase Global’s
public reporting company disclosure, based on discussions with the SEC staff, the Relevant Coinbase Entities believe these potential
enforcement actions would relate to aspects of the Relevant Coinbase Entities’ Coinbase Prime service, spot market, staking
service Coinbase Earn, and Coinbase Wallet, and the potential civil action may seek injunctive relief, disgorgement, and civil
penalties. On June 6, 2023, the SEC filed a complaint against the Relevant Coinbase Entities in federal district court in the Southern
District of New York, alleging, inter alia: (i) that Coinbase Inc. has violated the Exchange Act by failing to register
with the SEC as a national securities exchange, broker-dealer, and clearing agency, in connection with activities involving certain
identified digital assets that the SEC’s complaint alleges are securities, (ii) that Coinbase Inc. has violated the Securities
Act by failing to register with the SEC the offer and sale of its staking program, and (iii) that Coinbase Global is jointly
and severally liable as a control person under the Exchange Act for Coinbase Inc.’s violations of the Exchange
Act to the same extent as Coinbase Inc. The SEC’s complaint seeks a permanent injunction against the Relevant Coinbase
Entities to prevent them from violations of the Exchange Act or Securities Act, disgorgement, civil monetary penalties,
and such other relief as the court deems appropriate or necessary. On February 27, 2025, the SEC and the Relevant Coinbase Entities
filed a joint stipulation to dismiss the case with prejudice, and the case has been dismissed. Notwithstanding the dismissal of