Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 174

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 174
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 Congress is currently
considering legislation, such as the Digital Asset Market Clarity Act of 2025 (CLARITY Act), which could give the CFTC greater
powers to regulate the spot digital asset market. It is possible that, if legislation is passed, it could require the Trust or
the Sponsor, or service providers to the Trust, such as the Liquidity Provider, Authorized Participant, Bitcoin Custodian, or Additional
Bitcoin Custodian among others, to register with the CFTC. Such additional regulatory obligations may cause the Trust, the Trustee,
the Sponsor, Liquidity Provider, Authorized Participant, Bitcoin Custodian, or Additional Bitcoin Custodian to incur extraordinary
expenses. If the Trust, the Trustee, the Sponsor, Liquidity Provider, Authorized Participant, Bitcoin Custodian, or Additional
Bitcoin Custodian decided to seek the required licenses, there is no guarantee that they will timely receive them. The Trustee
may decide to discontinue and wind up the Trust. A dissolution of the Trust in response to the changed regulatory circumstances
may be at a time that is disadvantageous to the Shareholders. A Liquidity Provider may also instead decide to terminate its role
as a Liquidity Provider of the Trust, which may decrease the liquidity of the Shares.

A temporary or permanent “fork” of the bitcoin blockchain
could adversely affect an investment in the Trust. Shareholders will not receive the benefits of any forks or airdrops.

Bitcoin software is open source. Any user can download the software,
modify it and then propose that the core developers, users and miners adopt the modification. When a modification is introduced
by the core developers and a substantial majority of users and miners consent to the modification, the change is implemented and
the Bitcoin network continues to operate uninterrupted on a single

26

blockchain. However, if less than a substantial majority of users and
miners consent to the proposed modification, but the modification is nonetheless implemented by some users and miners and the modification
is not compatible with the software prior to its modification, the consequence would be what is known as a “fork” (i.e.,
“split”) of the Bitcoin network (and the blockchain), with one version running the pre-modified software and the other
running the modified software. The effect of such a fork would be the existence of two (or more) versions of the Bitcoin network
running in parallel, but with each version’s bitcoin lacking interchangeability, and with different blockchains. Such a fork
in the Bitcoin