Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 233

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 233
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delay to act by any Gemini service provider, including Gemini’s banks, or any other participant that is within the time
limits permitted by the User Agreement or prescribed by law, or that is caused by the Trust’s negligence.

Under the User Agreement, Gemini is not responsible
for any “System Failure” (defined as a failure of any computer hardware or software used by Gemini, a Gemini service
provider, or any telecommunications lines or devices used by Gemini or a Gemini service provider), or scheduled or unscheduled
maintenance or downtime, which prevents Gemini from fulfilling its obligations under the User Agreement, provided that Gemini
used commercially reasonable efforts to prevent or limit such System Failures, or downtime. Gemini cannot be held responsible
for any other circumstances beyond Gemini’s reasonable control.

The Additional Bitcoin Custodian’s parent, Coinbase
Global maintains a commercial crime insurance policy of up to $320 million, which is intended to cover the loss of client assets
held by Coinbase Global and all of its subsidiaries, including the Additional Bitcoin Custodian (collectively, Coinbase Global
and its subsidiaries are referred to as the “Coinbase Insureds”), including from employee collusion or fraud, physical
loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained by Coinbase
Global is shared among all of Coinbase’s customers, is not specific to the Trust or to customers of the Additional Bitcoin
Custodian and may not be available or sufficient to protect the Trust from all possible losses or sources of losses. Coinbase
Global’s insurance may not cover the type of losses experienced by the Trust. Alternatively, the Trust may be forced to
share such insurance proceeds with other clients or customers of the Coinbase Insureds, which could reduce the amount of such
proceeds that are available to the Trust. In addition, the bitcoin insurance market is limited, and the level of insurance maintained
by Coinbase Global may be substantially lower than the assets of the Trust. While the Additional Bitcoin Custodian maintains certain
capital reserve requirements depending on the assets under custody, and such capital reserves may provide additional means to
cover Trust asset losses, the Trust cannot be assured that the Additional Bitcoin Custodian will maintain capital reserves sufficient
to cover actual or potential losses with respect to the Trust’s digital assets.

Additionally, under the Additional Bitcoin Custody
Agreement, the Additional Bitcoin Custodian’s liability is limited as follows, among others: (i) in respect of any incidental,
indirect, special, punitive, consequential or similar