Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 35

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 35
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 and/or sale of
the new alternative asset may cause Shareholders to incur a U.S. federal income tax liability. While the IRS has not addressed
all situations in which airdrops occur, it is clear from the reasoning of the IRS’s current guidance that it generally would
treat an airdrop as a taxable event giving rise to ordinary income and it is anticipated that any gain or loss from disposition
of any assets received in the airdrop would generally be treated as giving rise to capital gain or loss that generally would be
short-term capital gain or loss, unless the holding period of those assets were treated as being greater than one year as of the
time they are sold. However, the Sponsor has committed to cause the Trust to irrevocably abandon any rights to acquire, or otherwise
establish dominion and control over, any virtual currency or other asset or right, other than bitcoin, which rights are incident
to the Trust’s ownership of bitcoin and arise without any action of the Trust, or of the Sponsor or Trustee on behalf of
the Trust (“Incidental Rights”) and any such virtual currency acquired through an Incidental Right as “IR Virtual
Currency” to which the Trust may become entitled in the future.There can be no assurance that these abandonments would be
treated as effective for U.S. federal income tax purposes, or that the Sponsor will continue to cause the Trust to irrevocably
abandon any Incidental Rights and IR Virtual Currency if there are future regulatory developments that would make it feasible for
the Trust to retain those assets.

3.8% Tax on Net Investment Income

Certain U.S. Shareholders who are individuals are required to pay
a 3.8% tax on the lesser of the excess of their modified adjusted gross income over a threshold amount ($250,000 for married persons
filing jointly and $200,000 for single taxpayers) or their “net investment income,” which generally includes capital
gains from the disposition of property. This tax is in addition to any capital gains taxes due on such investment income. A similar
tax applies to estates and trusts. U.S. Shareholders should consult their own tax advisers regarding the effect, if any, this tax
may have on their investment in the Shares.

Brokerage Fees and Trust Expenses

Any brokerage or other transaction fee incurred by a Shareholder
in purchasing Shares will be treated as part of the Shareholder’s tax basis in the underlying assets of the Trust. Similarly,
any brokerage