Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 79

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 79
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 the Additional Bitcoin Custodian to another custodian may be complex and could subject the Trust’s
bitcoin to the risk of loss during the transfer, which could have a negative impact on the performance of the Shares or result
in loss of the Trust’s assets. Also, if the Additional Bitcoin Custodian becomes insolvent, suffers business failure, ceases
business operations, default on or fail to perform their obligations under its contractual agreement with the Trust, or abruptly
discontinue the services it provides to the Trust for any reason, the Trust’s operations including its creation and redemption
processes would be adversely affected.

The Sponsor may not be able to find a party willing to serve as
the custodian or perform clearing services under the same terms as the current Custody Agreement, Additional Bitcoin Custody
Agreement and Clearing Agreement. To the extent that Sponsor is not able to find a suitable party willing to serve as the
custodian or to perform clearing services, the Sponsor may be required to terminate the Trust and liquidate the Trust’s
bitcoin. In addition, to the extent that the Sponsor finds a suitable party but must enter into a modified Custody Agreement,
Additional Bitcoin Custody Agreement or Clearing Agreement that is less favorable for the Trust or Sponsor, the value of the
Shares could be adversely affected.

If an Authorized Participant or a Liquidity Provider suffers insolvency,
business failure or interruption, default, failure to perform, security breach, or if an Authorized Participant or a Liquidity
Provider chooses not to participate in the creation and redemption processes of the Trust due to the risks described in “-The
inability of Liquidity Providers to hedge their bitcoin exposure may adversely affect the liquidity of Shares and the value of
an investment in the Shares” and “-If the process of creation and redemption of baskets encounters any unanticipated
difficulties, the possibility for arbitrage transactions by Authorized Participants intended to keep the price of the Shares closely
linked to the price of Bitcoin may not exist and, as a result, the price of the Shares may fall or otherwise diverge from NAV,”
and the Trust is unable to engage replacement Authorized Participants or Liquidity Providers on commercially acceptable terms or
at all, then the creation and redemption processes of the Trust or the arbitrage mechanism used to keep the Trust’s Shares
trading in line with NAV could be negatively affected.

Digital asset markets in the United States exist in a state of regulatory
uncertainty, and adverse legislative or regulatory developments could significantly harm the value of bitcoin