Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 257

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 257
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,
certain future developments could render it impossible, or impracticable, for the Trust to continue to be treated as a grantor
trust for such purposes.

69

If the Trust is not properly classified as a grantor
trust, the Trust might be classified as a partnership for U.S. federal income tax purposes. However, due to the uncertain treatment of
digital assets for U.S. federal income tax purposes, future developments regarding the treatment of digital assets for U.S. federal income
tax purposes could adversely affect the value of the Shares. If the Trust were classified as a partnership for U.S. federal income tax
purposes, the tax consequences of owning Shares generally would not be materially different from the tax consequences described herein,
although there might be certain differences, including with respect to timing of the recognition of taxable income or loss and (in certain
circumstances) withholding taxes. In addition, tax information reports provided to beneficial owners of Shares would be made in a different
form. If the Trust were not classified as either a grantor trust or a partnership for U.S. federal income tax purposes, it generally would
be classified as a corporation for such purposes. If it were treated as a corporation, the Trust would be subject to entity-level U.S.
federal income tax (currently at the rate of 21%), plus possible state and/or local taxes, on its net taxable income, and certain distributions
made by the Trust to Shareholders would be treated as taxable dividends to the extent of the Trust’s current and accumulated earnings
and profits. Any such dividend distributed to a beneficial owner of Shares that is a non-U.S. person for U.S. federal income tax purposes
generally would be subject to U.S. federal withholding tax at a rate of 30% (or such lower rate as provided in an applicable tax treaty).

The treatment of digital assets for U.S. federal
income tax purposes is uncertain.

Assuming that the Trust is properly treated as
a grantor trust for U.S. federal income tax purposes, each beneficial owner of Shares will be treated for U.S. federal income tax purposes
as the owner of an undivided interest in the bitcoin held in the Trust. Due to the new and evolving nature of digital assets and the absence
of comprehensive guidance with respect to digital assets, many significant aspects of the U.S. federal income tax treatment of digital
assets (including digital currency) are uncertain.

In 2014, the IRS released a notice (the “Notice