Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 173

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 173
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 result some users of the Bitcoin Cash network
                                         may harbor ill will toward the Bitcoin network. These users may attempt to negatively
                                         impact the use or adoption of the Bitcoin network, as could constituencies adversely
                                         impacted by any contentious hard forks that take place in the future.

●Also in August 2017, the Bitcoin network was upgraded
                                         with a technical feature known as “Segregated Witness” with the promise of
                                         increasing the number of transactions per second that can be handled on-chain and enabling
                                         so-called second layer solutions, such as the Lightning Network or payment channels,
                                         that have the potential to increase transaction throughput by processing certain transactions
                                         outside the main Bitcoin Blockchain, but which may fail to achieve the expected benefits
                                         or widespread adoption or lead to new or unanticipated problems, leading to a decline
                                         in public support for, and the price of, bitcoin.

●As of the date of this Report, the largest 100 bitcoin
                                         wallets held a substantial amount of the outstanding supply of bitcoin and it is possible
                                         that some of these wallets are controlled by the same person or entity. Moreover, it
                                         is possible that other persons or entities control multiple wallets that collectively
                                         hold a significant number of bitcoin, even if each wallet individually only holds a small
                                         amount. As a result of this concentration of ownership, large sales by such holders could
                                         have an adverse effect on the market price of bitcoin.

Moreover, because digital assets, including
bitcoin, have been in existence for a short period of time and are continuing to develop, there may be additional risks in the
future that are impossible to predict as of the date of this Report.

Due to the nature of private keys, bitcoin
transactions are irrevocable and stolen or incorrectly transferred bitcoin may be irretrievable. As a result, any incorrectly
executed bitcoin transactions could adversely affect an investment in the Trust.

Bitcoin transactions are not reversible.
Once a transaction has been signed with private keys, verified and recorded in a block that is added to the Bitcoin Blockchain,
an incorrect transfer of cryptocurrency, such as bitcoin, or a theft of bitcoin generally will not be reversible and the Trust
may not be capable of seeking compensation for any such transfer or theft. To the extent that the Trust is unable to successfully
seek redress for such error or theft, such loss could adversely affect an investment in the Trust.

The custody of the Trust’s bitcoin
is handled by the Bitcoin Custodian and the Additional Bitcoin