Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 111

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 111
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 companies with active operations in the digital assets industry. As illustrated by the 2022 Events,
many of the players in the digital assets markets are interconnected – for example, certain market participants may be active
in both borrowing and lending, or engage in a wide variety of trading relationships and transactions, with respect to many of
the same counterparties, or with respect to the same digital assets or blockchain networks – which can heighten the contagion
risks if one of them defaults on its obligations to others or a given digital blockchain network or digital asset were to stop
functioning properly or lose substantial value, as applicable, leading to correlated failures in a wider market downturn or a
disruption or market dislocation affecting that particular blockchain network or that particular digital asset. It is possible
that, in circumstances similar to the 2022 Events, this interconnectedness risk affecting the Bitcoin Custodian and the Liquidity
Providers to the Trust could adversely affect the Trust or its Shareholders, for instance by disrupting creation and redemption
processes.

Coinbase serves as the Bitcoin Custodian for several
competing exchange-traded bitcoin products, which could adversely affect the Trust’s operations and ultimately the value
of the shares.

The Additional Bitcoin Custodian is an affiliate of
Coinbase Global. As of the date hereof, Coinbase Global is the largest publicly traded cryptoasset company in the world by market
capitalization and is also the largest cryptoasset custodian in the world by assets under custody. By virtue of its leading market
position and capabilities, and the relatively limited number of institutionally-capable providers of cryptoasset brokerage and
custody services, Coinbase serves as the Bitcoin Custodian for several competing exchange-traded bitcoin products. Therefore,
Coinbase has a critical role in supporting the U.S. spot bitcoin exchange-traded product ecosystem, and its size and market share
creates the risk that Coinbase may fail to properly resource its operations to adequately support all such products that use its
services that could harm the Trust, the Shareholders and the value of the Shares. If Coinbase were to favor the interests of certain
products over others, it could result in inadequate attention or comparatively unfavorable commercial terms to less favored products,
which could adversely affect the Trust’s operations and ultimately the value of the Shares.

62

The Trust’s Authorized Participants act in
similar or identical capacities for several competing exchange-traded bitcoin products, which may impact the ability or willingness
of one or more Authorized Participants to participate in the creation and redemption process, adversely affect