Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 19

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 19
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 in or holding spot Bitcoin. Until further regulatory clarity emerges regarding whether registered
broker-dealers can hold and deal in Bitcoin under such rules, there is a risk that registered broker-dealers participating in the
in-kind creation or redemption of Shares for Bitcoin may be unable to demonstrate compliance with such requirements. While compliance
with these requirements would be the broker-dealer’s responsibility, a national securities exchange is required to enforce
compliance by its member broker-dealers with applicable federal securities law and rules. As a result, the SEC is unlikely to permit
an exchange to adopt listing rules for a product if it is not clear that the exchange’s members would be able to comply with
applicable rules when transacting in the product as designed. To the extent further regulatory clarity emerges, the Sponsor expects
the Exchange to seek In-Kind Regulatory Approval to amend its listing rules to permit the Trust to create and redeem Shares in-kind
for bitcoin, in which Authorized Participants or their designees would deposit Bitcoin directly with the Trust or receive Bitcoin
directly from the Trust. However, there can be no assurance as to when such regulatory clarity will emerge, or when the Exchange
will seek or obtain In-Kind Regulatory Approval, if at all.

To become an Authorized Participant, a person must enter into an
agreement with the Sponsor and the Trustee that provides the procedures for the creation and redemption of Baskets (the “Authorized
Participant Agreement”). The Authorized Participant Agreement provides the procedures for the creation and redemption of
Baskets and for the delivery, or facilitation of the delivery, of the bitcoin required for such creation and redemptions. The Authorized
Participant Agreement and the related procedures attached thereto may be amended by the Trust or the Sponsor (as the case may be),
without the consent of any Shareholder or Authorized Participant. Authorized Participants pay the Transfer Agent a fee for each
order they place to create or redeem one or more Baskets. The transaction fee may be reduced, increased or otherwise changed by
the Sponsor. Authorized Participants who make deposits (directly in the case of cash creations and, subject to In-Kind Regulatory
Approval, indirectly in the case of bitcoin deposits) with the Trust in exchange for Baskets receive no fees, commissions or other
form of compensation or inducement of any kind from either the Trust or the Sponsor, and no such person has any obligation or responsibility
to the Sponsor or the Trust to effect any sale or resale of Shares.

Each Authorized Participant is required to be registered as