Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 127

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 127
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 value of the Shares is subject to a number of factors relating
to the fundamental investment characteristics of bitcoin as a digital asset, including the fact that digital assets are bearer
instruments and loss, theft, destruction, or compromise of the associated private keys could result in permanent loss of the asset,
and the capabilities and development of blockchain technologies such as the bitcoin blockchain. 

Digital assets such as bitcoin were only introduced within the past
16 years, and the value of the Shares is subject to a number of factors over time relating to the capabilities and development
of blockchain technologies, such as the recentness of their development, their dependence on the internet and other technologies,
their dependence on the role played by users, developers and miners and the

23

potential for malicious activity. Given the recentness of the development
of digital asset networks, digital assets may not function as intended and parties may be unwilling to use digital assets, which
would dampen the growth, if any, of digital asset networks. Because bitcoin is a digital asset, the value of the Shares is subject
to a number of factors relating to the fundamental investment characteristics of digital assets, including the fact that digital
assets are bearer instruments and loss, theft, compromise, or destruction of the associated private keys could result in permanent
loss of the asset.

The Bitcoin network, including the cryptographic and algorithmic protocols
associated with the operation of the Bitcoin Blockchain, has only been in existence since 2009, and bitcoin markets have a limited
performance record, making them part of a new and rapidly evolving industry that is subject to a variety of factors that are difficult
to evaluate. For example, the following are some of the risks could materially adversely affect the value of the Shares:

    ●
    Digital assets, including bitcoin, are controllable only by the possessor
    of both the unique public key and private key or keys relating to the Bitcoin network address, or “wallet,” at
    which the digital asset is held. Private keys must be safeguarded and kept private in order to prevent a third party from
    accessing the digital asset held in such wallet. The loss, theft, compromise or destruction of a private key required to access
    a digital asset may be irreversible. If a private key is lost, stolen, destroyed or otherwise compromised and no backup of
    the private key is accessible, the owner would be unable to access the digital asset corresponding to that private key and
    the private key will not be capable of being restored by the digital