Company: HODL
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000930413-25-001795
Chunk: 3

Company: VanEck Bitcoin ETF
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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 risk to the extent its balance exceeds the federally insured limits. As of December 31, 2024,
and March 31, 2025, the Trust did not hold cash.

 C. Investment Valuation

The Trust values its investment in bitcoin and other assets and
liabilities at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants on the measurement date.

The Trust identifies and determines the bitcoin principal market
(or in the absence of a principal market, the most advantageous market) for GAAP financial statement purposes consistent with the
application of fair value measurement framework in Financial Accounting Standards Board (“FASB”) ASC 820 at 11:59 p.m.
EST. Under ASC 820, a principal market is the market with the greatest volume and activity level for the asset or liability. The
Sponsor on behalf of the Trust will determine in its sole discretion the valuation sources and policies used to prepare the Trust’s
financial statements in accordance with GAAP.

Various inputs are used in determining the fair value of assets
and liabilities. Inputs may be based on independent market data (observable inputs) or they may be internally developed (unobservable
inputs). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes.
The three levels of the fair value hierarchy are as follows:

Level 1 – Unadjusted quoted prices in active markets for
identical assets or liabilities;

Level 2 – Inputs other than quoted prices included within
Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets
or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered
to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally
from or corroborated by observable market data by correlation or other means; and

5

VANECK BITCOIN ETF

Notes to Unaudited Financial Statements (continued)

March 31, 2025

Level 3 – Unobservable inputs where there are little or
no market activity for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.
The following is a summary of the fair value hierarchy as of March 31, 2025, and December 31, 2024:

    March 31, 2025 
    Level 1 
    Level