Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 208

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 208
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 seek to hold bitcoin,
could impact the price of bitcoin. If the price of bitcoin declines, the trading price of the Shares will generally also decline.

The inability of Liquidity Providers
to hedge their bitcoin exposure may adversely affect the liquidity of Shares and the value of an investment in the Shares.

Liquidity Providers will generally want
to hedge their bitcoin exposure in connection with Basket creation and redemption orders, while Authorized Participants would
generally want to hedge their exposure to the Trust’s Shares to the extent possible. To the extent Authorized Participants
and/or Liquidity Providers are unable to hedge their exposure to the Trust’s Shares or bitcoin respectively due to market
conditions (e.g., insufficient bitcoin liquidity in the market, inability to locate an appropriate hedge counterparty, etc.),
such conditions may make it difficult to create or redeem Baskets or cause them to not participate in creating or redeeming Baskets.
In addition, the hedging mechanisms employed by Authorized Participants and/or Liquidity Providers to hedge their exposure to
the Trust’s Shares or bitcoin, respectively, may not function as intended, which may make it more difficult for them to
enter into such transactions. Such events could negatively impact the market price of the Trust and the spread at which the Trust
trades on the open market. To the extent Liquidity Providers turn to the market for exchange-traded futures contracts for bitcoin
(“Bitcoin Futures”) as well as the non-exchange traded bitcoin derivatives markets for their hedging needs in connection
with their bitcoin sales to and purchases from the Trust, both the exchange-traded Bitcoin Futures market and the non-exchange
traded bitcoin derivatives markets have limited trading history and operational experience and may be less liquid, more volatile
and more vulnerable to economic, market and industry changes than more established futures and derivatives markets. The liquidity
of the market will depend on, among other things, the adoption of bitcoin and the commercial and speculative interest in the market
for the ability to hedge against the price of bitcoin with exchange-traded Bitcoin Futures and non-exchange traded bitcoin derivatives.
There can be no assurance that such markets will be able to meet the hedging needs of Liquidity Providers, which could cause such
Liquidity Providers to refrain from participation in the Trust’s creation and redemption processes, which could have adverse
effects on Shareholders such as wider spreads, a breakdown of the arbitrage mechanism used to keep the Trust’s Shares trading
in line with NAV of the Trust’s bitcoin holdings, and potentially a disruption of the creation or