Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 106

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 106
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 be required in order to recover the
assets held with the Bitcoin Custodian or the Additional Bitcoin Custodian, all of which could significantly and negatively impact
the Trust’s operations and the value of the Shares.

Under the Trust Agreement, the Trustee and the Sponsor
will not be liable for any liability or expense incurred, including, without limitation, as a result of any loss of bitcoin by
the Bitcoin Custodian, absent gross negligence or bad faith on the part of the Trustee or the Sponsor or breach by the Sponsor
of the Trust Agreement, as the case may be. As a result, the recourse of the Trust or the Shareholders to the Trustee or the Sponsor,
including in the event of a loss of bitcoin by the Bitcoin Custodian, is limited.

The Shareholders’ recourse against the Sponsor,
the Trustee, and the Trust’s other service providers for the services they provide to the Trust, including, without limitation,
those relating to the holding of bitcoin or the provision of instructions relating to the movement of bitcoin, is limited. For
the avoidance of doubt, neither the Sponsor, the Trustee, nor any of their affiliates, nor any other party has guaranteed the
assets or liabilities, or otherwise assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider
to the Trust, including, without limitation, the Bitcoin Custodian or the Additional Bitcoin Custodian. Consequently, a loss may
be suffered with respect to the Trust’s bitcoin that is not covered by the Bitcoin Custodian’s or the Additional Bitcoin
Custodian’s insurance and for which no person is liable in damages. As a result, the recourse of the Trust or the Shareholders,
under applicable law, is limited.

Loss of a critical banking relationship for, or
the failure of a bank used by, the Trust could adversely impact the Trust’s ability to create or redeem Baskets, or could
cause losses to the Trust.

The Cash Custodian and Bitcoin Custodian, under the
Clearing Agreement, facilitate the creation and redemption of Baskets (in exchange for cash subscriptions by Authorized Participants,
or in exchange for redemptions of Shares by Authorized Participants), and other cash movements, including in connection with the
purchase of bitcoin by the Trust to effectuate subscriptions for cash and the selling of bitcoin by the Trust to effect redemptions
for cash or pay the Sponsor Fee and, to the extent applicable, other Trust expenses, and in extraordinary circumstances, to effect
the liquidation of the Trust’s