Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 126

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 126
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 also adversely affect market confidence and
liquidity. Further, these risks are underscored by recent legislative developments. On July 18, 2025, the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025 (“GENIUS Act”) was enacted, establishing a federal regulatory
framework for payment stablecoins. The GENIUS Act prohibits the issuance or use of payment stablecoins unless the issuer obtains
a qualifying license and complies with a range of regulatory requirements, including reserve backing with liquid assets, redemption
rights, governance standards, and operational transparency. The GENIUS Act also restricts the payment of interest on stablecoins
and imposes oversight on both bank and nonbank issuers. The enactment of the GENIUS Act, or the removal or migration of prominent
stablecoins from the Bitcoin network, could reduce the willingness of market participants to engage in digital asset transactions
that rely on stablecoins, diminish liquidity in the bitcoin market, and adversely affect the price of bitcoin. Any such developments
could, in turn, materially and adversely impact the value of the Shares.

Digital Asset Treasury Companies Risk

In recent times, a number of companies engaged in
businesses outside the digital assets industry have begun to hold their corporate treasuries in digital assets instead of in fiat
currency (“digital asset treasury companies”). In some cases, these companies have raised funds through financing or
securities offerings and applied the proceeds to purchase digital assets, including bitcoin.

Digital asset treasury companies are a relatively
new phenomenon and it is impossible to predict all of the risks they could pose to the Trust. On the one hand, digital asset treasury
companies may increase procyclical dynamics in the market because they may purchase digital assets, such as bitcoin, when prices
are rising and they may sell such assets when prices are decreasing, potentially making bitcoin more expensive in a rising market
and then causing downward pressure on bitcoin prices in a falling market (causing prices to fall faster than they otherwise would).
Digital asset treasury companies could cause greater volatility in digital asset markets, including markets for bitcoin. Negative
events or sentiment surrounding digital asset treasury companies could affect the market for bitcoin. On the other hand, digital
asset treasury companies may compete with the Trust in the marketplace as a perceived alternative means of achieving exposure to
the price of bitcoin (to a greater or lesser extent) through investing in securities. The foregoing or similar events involving
digital asset treasury companies could adversely affect holders of Shares in the Trust.

The