Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 28

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 could adversely affect the value of the Shares. Manipulative trading or market abuse
could create artificial or distorted prices, cause a loss of investor

17

confidence in bitcoin, adversely impact pricing trends in bitcoin markets
broadly, and cause losses from an investment in Shares of the Trust.

If a Liquidity Provider Agreement, the Custody Agreement, the Additional
Bitcoin Custody Agreement, an Authorized Participant Agreement or Clearing Agreement is terminated or a Liquidity Provider, an
Authorized Participant, the Bitcoin Custodian or the Additional Bitcoin Custodian fails to participate in the creation or redemption
processes of the Trust or fails to provide services as required, the Sponsor may need to find and appoint a replacement Liquidity
Provider, Authorized Participant, Bitcoin Custodian or Additional Bitcoin Custodian quickly, which could pose a challenge to the
Trust’s ability to create and redeem Shares or the safekeeping of the Trust’s bitcoins, and the Trust’s ability
to continue to operate may be adversely affected.

The Trust is dependent on the Bitcoin Custodian to operate, pursuant
to the Custody Agreement and the Clearing Agreement. The Bitcoin Custodian performs essential functions in terms of safekeeping
the Trust’s bitcoin and, via the Clearing Services, facilitates the transfer of bitcoin to the Trust by Liquidity Providers
and from the Trust in connection with creations and redemptions and to pay the Sponsor Fee and extraordinary Trust expenses, and
in extraordinary circumstances, to liquidate the Trust. If the Bitcoin Custodian fails to perform the functions it performs for
the Trust, the Trust may be unable to operate or create or redeem Baskets, which could force the Trust to liquidate or adversely
affect the price of the Shares.

The Sponsor could decide to replace the Bitcoin Custodian as the
custodian of the Trust’s bitcoins, pursuant to the Custody Agreement. Similarly, the Bitcoin Custodian under the
Custody Agreement and Clearing Agreement may terminate the Custody Agreement and Clearing Agreement respectively upon
providing the applicable notice to the Trust for any reason, or immediately, upon the occurrence of a Termination Event (as
defined below) that is incapable of being cured within ten business days or if it determines in its sole discretion it is
necessary to take such action to comply with applicable laws and regulations or in connection with Gemini’s fraud or
other compliance program. Under the Custody Agreement, a “Termination Event” occurs when (i) any representation,
warranty, certification or statement made by the