Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 211

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 211
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 the underlying bitcoin held
by the Trust, which could negatively affect Shareholders and cause them to purchase or sell Shares at a premium or discount to
the value of the underlying bitcoin, causing losses; alternatively, it could be unable to operate, as there would no parties who
would be able to create new Shares or redeem existing Shares, leading to the Trust being unsuccessful commercially and the Sponsor
deciding to terminate and wind up the Trust’s operations. There can be no assurance that In-Kind Regulatory Approval will
ever be obtained or that in-kind subscription or redemption transactions will ever occur, meaning that the Trust may conduct subscriptions
and redemptions solely in cash for the foreseeable future and indefinitely if necessary. In addition,
a failure to settle bitcoin transactions with Liquidity Providers could disrupt the calculation of the Trust’s NAV or potentially
cause inaccuracies in NAV calculation, which could disrupt the Trust’s operations or cause Shareholders to suffer losses.

The lack of ability to facilitate in-kind creations
and redemptions of Shares could have adverse consequences for the Trust.

The Trust is currently only able to conduct subscriptions
and redemptions in cash, which means that an Authorized Participant will deposit cash into, or accept cash from, the Trust’s
account with the Cash Custodian in connection with the creation and redemption of Baskets, and will obtain or receive bitcoin
in exchange for cash in connection with such order. However, and in common with other spot bitcoin exchange-traded products, the
Trust is not at this time able to create and redeem Shares via in-kind transactions with Authorized Participants in exchange for
bitcoin.

47

Authorized Participants must be registered broker-dealers.
Registered broker-dealers are subject to various requirements of the federal securities laws and rules, including financial responsibility
rules such as the customer protection rule, the net capital rule and recordkeeping requirements. There has yet to be definitive
regulatory guidance on whether and how registered broker-dealers can comply with these rules with regard to transacting 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