Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 85

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 85
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 asset markets. Stablecoins are digital assets designed
to have a stable value over time as compared to typically volatile digital assets and are typically marketed as being pegged to
a fiat currency, such as the U.S. dollar, at a certain value. Although the prices of stablecoins are intended to be stable, their
market value may fluctuate. This volatility has in the past apparently impacted the price of bitcoin. Stablecoins are a relatively
new phenomenon, and it is impossible to know all of the risks that they could pose to participants in the bitcoin market. Like
CBDCs, stablecoins could compete with, or replace, bitcoin and other digital assets as a medium of exchange or store of value.
In addition, some have argued that some stablecoins, particularly Tether, are improperly issued without sufficient backing in a
way that, when the stablecoin is used to pay for bitcoin, could cause artificial rather than genuine demand for bitcoin, thereby
artificially inflating the price of bitcoin. On February 17, 2021, the New York Attorney General entered

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into an agreement with Tether’s operators, requiring them to cease
any further trading activity with New York persons and pay $18.5 million in penalties for false and misleading statements made
regarding the assets backing Tether. On October 15, 2021, the CFTC announced a settlement with Tether’s operators in which
they agreed to pay $42.5 million in fines to settle charges that, among others, Tether’s claims that it maintained sufficient
U.S. dollar reserves to back every Tether stablecoin in circulation with the “equivalent amount of corresponding fiat currency”
held by Tether were untrue.

USDC is a reserve-backed stablecoin issued by Circle Internet Financial
that is commonly used as a method of payment in digital asset markets, including the bitcoin market. While USDC is designed to
maintain a stable value at one U.S. dollar at all times, on March 10, 2023, the value of USDC fell below $1.00 for multiple days
after Circle Internet Financial disclosed that $3.3 billion of the USDC reserves were held at Silicon Valley Bank, which had entered
FDIC receivership earlier that day. Stablecoins are reliant on the U.S. banking system and U.S. treasuries, and the failure of
either to function normally could impede the function of stablecoins, and therefore could adversely affect the value of the