Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 116

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 116
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 NYDFS Settlement and previous examinations. The NYDFS Settlement also reserves the NYDFS’s right to bring an action
against Gemini if Gemini fails to fulfill its obligations under NYDFS Settlement. The NYDFS Settlement does not resolve any other
regulatory proceedings or litigation involving Gemini. As a regulated entity with financial services licenses in multiple jurisdictions,
it is possible that other regulators may decide to initiate their own action with respect to Gemini based on the findings contained
in the NYDFS Settlement.

Gemini, as the Bitcoin Custodian, could be required, as a result
of judicial or regulatory determinations, or could choose, to restrict or curtail the services it offers (whether in or from
New York State or generally), its licenses could be impacted, or its financial condition and ability to provide services to
the Trust could be affected as a result of the NYDFS Settlement, NYAG Settlement, or other litigation. If the Bitcoin
Custodian were to be required or choose, as a result of litigation or regulatory action, to restrict, curtail, or terminate
the services it offers, it could negatively affect the Trust’s ability to operate, hold bitcoin, or process creations
or redemptions of Baskets, which could force the Trust to engage an alternate bitcoin custodian or to liquidate and could
adversely affect the value of the Shares.

Similarly, the Additional Bitcoin Custodian performs essential functions
in terms of safekeeping the Trust’s bitcoin in the Additional Bitcoin Vault Balance. If the Additional Bitcoin Custodian
fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem Baskets, which
could force the Trust to liquidate or adversely affect the price of the Shares.

On March 22, 2023, Coinbase, Inc., which is an affiliate of the Additional
Bitcoin Custodian, and its parent (such parent, “Coinbase Global” and together with Coinbase Inc., the “Relevant
Coinbase Entities”) received a “Wells Notice” from the SEC staff stating that the SEC staff made a “preliminary
determination” to recommend that the SEC file an enforcement action against the Relevant Coinbase Entities alleging violations
of the federal securities laws, including the Exchange Act and the Securities Act. According to Coinbase Global’s
public reporting company disclosure, based on discussions with the SEC staff, the Relevant Coinbase Entities believe these potential
enforcement actions would relate to aspects of the Relevant Coinbase Entities’ Coinbase Prime service, spot