Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 113

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 113
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 a challenge to the
Trust’s ability to create and redeem Shares or the safekeeping of the Trust’s bitcoins, and the Trust’s ability
to continue to operate may be adversely affected.

The Trust is dependent on the Bitcoin Custodian to operate, pursuant
to the Custody Agreement and the Clearing Agreement. The Bitcoin Custodian performs essential functions in terms of safekeeping
the Trust’s bitcoin and, via the Clearing Services, facilitates the transfer of bitcoin to the Trust by Liquidity Providers
and from the Trust in connection with creations and redemptions and to pay the Sponsor Fee and extraordinary Trust expenses, and
in extraordinary circumstances, to liquidate the Trust. If the Bitcoin Custodian fails to perform the functions it performs 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.

The Sponsor could decide to replace the Bitcoin Custodian as the
custodian of the Trust’s bitcoins, pursuant to the Custody Agreement. Similarly, the Bitcoin Custodian under the
Custody Agreement and Clearing Agreement may terminate the Custody Agreement and Clearing Agreement respectively upon
providing the applicable notice to the Trust for any reason, or immediately, upon the occurrence of a Termination Event (as
defined below) that is incapable of being cured within ten business days or if it determines in its sole discretion it is
necessary to take such action to comply with applicable laws and regulations or in connection with Gemini’s fraud or
other compliance program. Under the Custody Agreement, a “Termination Event” occurs when (i) any representation,
warranty, certification or statement made by the Trust was or becomes incorrect in any material respect when made; (ii) the
Trust materially breaches, or fails in any material respect to perform any of its obligations under the Custody Agreement;
(iii) the Trust requests a postponement of maturity or a moratorium with respect to any indebtedness or is adjudged bankrupt
or insolvent, or there is commenced against the Trust a case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or the Trust files a petition for bankruptcy or an application for an arrangement with its
creditors, seeks or consents to the appointment of a receiver, administrator or other similar official for all or any
substantial part of its property, admits in writing its inability to pay its debts as they mature, or takes any corporate