Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 32

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 32
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 a Shareholder’s Shares are acquired on the same date and at the same price per Share.
Shareholders that hold multiple lots of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their
own tax advisers as to the determination of the tax basis and holding period for the underlying bitcoin related to such Shares.

Current IRS guidance on the treatment of convertible virtual currencies
classifies bitcoin as “property” that is not currency for U.S. federal income tax purposes and clarifies that bitcoin
could be held as a capital asset, but it does not address several other aspects of the U.S. federal income tax treatment of bitcoin.
Because bitcoin is a new technological innovation, the U.S. federal income tax treatment of bitcoin or transactions relating to
investments in bitcoin may evolve and change from those discussed below, possibly with retroactive effect. In this regard, the
IRS indicated that it has made it a priority to issue additional guidance related to the taxation of virtual asset transactions,
such as transactions involving bitcoin. While it has started to issue such additional guidance, whether any future guidance will
adversely affect the U.S. federal income tax treatment of an investment in bitcoin or in transactions relating to investments in
bitcoin is unknown. Moreover, future developments that may arise with respect to digital assets may increase the uncertainty with
respect to the treatment of digital assets for U.S. federal income tax purposes. This discussion assumes that any bitcoin the Trust
may hold is properly treated for U.S. federal income tax purposes as property that may be held as a capital asset and is not currency
for purposes of the provisions of the Code relating to foreign currency gain and loss.

Although the Trust generally does not intend to sell bitcoin, it
may use bitcoin to pay certain expenses of the Trust, which under current IRS guidance will be treated as a sale of such bitcoin,
and/or it may

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periodically sell bitcoin in an amount sufficient to pay those expenses
using fiat currency. If the Trust sells bitcoin (for example to generate cash to pay fees or expenses) or is treated as selling
bitcoin (for example by using bitcoin to pay fees or expenses), a Shareholder will recognize gain or loss in an amount equal to
the difference between (a) the Shareholder’s pro rata share of the amount realized by the Trust upon the sale and (b) the
Shareholder’s tax basis for its pro rata share of the bitcoin that was sold. A Shareholder’s tax basis for its share
of any bitcoin sold