Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 23

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 23
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 will not be held in
cold storage until such transfers can occur.

Bitcoin held in the Trust’s Bitcoin Custodian account is the
property of the Trust and is not leased, or loaned under any circumstances.

Determination of Required Deposits

The “Basket Cash Component” changes from day to day.
To determine the Basket Cash Component, the Administrator starts by determining the number of bitcoin held by the Trust as of the
opening of business on that trade date, and subtracts the amount of bitcoin constituting estimated accrued but unpaid fees and
expenses of the Trust as of the opening of business on that trade date. Fractions of a bitcoin smaller than 0.000001 are disregarded
for purposes of the computation of the Basket Deposit. Second, this figure, in bitcoin, is divided by the quotient of the number
of Shares outstanding at the opening of business on trade date divided by 25,000. This produces the Basket Deposit, which is the
number of bitcoin attributable to each Basket as of the opening of business on trade date. Third, the resulting bitcoin amount
is then valued, in cash, at the Index calculated on trade date, or in accordance with the other valuation policies described in
the Prospectus if the Index is not available. This produces the Basket Cash Component. The Basket Deposit, and the Basket Cash
Component, so determined is communicated via electronic mail message to all Authorized Participants, and made available on the
Sponsor’s website for the Shares. The Exchange also publishes the Basket Deposit determined by the Administrator as indicated
above.

By the end of day ET (or such other time as the parties may agree)
on the trade date for an order for the purchase of Baskets of the Trust, the Administrator will calculate and transmit the (1)
the Basket Cash Component, (2) an amount of cash sufficient to pay any applicable transaction fee, redemption fee and any additional
fixed and/or variable charges, costs, taxes, or expenses, applicable to creation orders or redemption orders effected fully in
cash (the “Cash Amount”), and (3) any amount by which the actual cash purchase price of the bitcoin from the Liquidity
Provider exceeds the adjusted Basket Cash Component (“Purchase Slippage”), to the Authorized Participant (collectively,
the Basket Cash

14

Component, the Cash Amount, and the Purchase Slippage, the “Required
Cash Creation Total”), which the Authorized Participant shall be responsible for delivering in cash on the Creation Settlement
Date to the Trust’s account at the Cash