Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 43

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 43
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 has evaluated the procedures and internal controls of the Trust’s Bitcoin Custodian and the Additional
Bitcoin Custodian to safeguard the Trust’s bitcoin holdings, as well as the procedures and internal controls of the Trust’s
Administrator. However, it is possible that, through computer or human error, or through theft or criminal action, the Trust’s
bitcoin could be transferred from the Trust’s Bitcoin Account or Clearing Account at the Bitcoin Custodian or the the Additional
Bitcoin Account at the Additional Bitcoin Custodian in incorrect amounts or to unauthorized third parties, or to incorrect destination
addresses on the Bitcoin Blockchain. Alternatively, if the Bitcoin Custodian’s and the Additional Bitcoin Custodian’s internal
procedures and controls are inadequate to safeguard the Trust’s bitcoin holdings, and the Trust’s private key(s) is
(are) lost, destroyed or otherwise compromised and no backup of the private key(s) is (are) accessible, the Trust will be unable
to access its bitcoin, which could adversely affect an investment in the Shares of the Trust. In addition, if the Trust’s
private key(s) is (are) misappropriated and the Trust’s bitcoin holdings are stolen, including from or by the Bitcoin Custodian
or the Additional Bitcoin Custodian, the Trust could lose some or all of its bitcoin holdings, which could adversely impact an
investment in the Shares of the Trust.

Such events have occurred in connection
with digital assets in the past. For example, in September 2014, the Chinese digital asset exchange Huobi announced that it had
sent approximately 900 bitcoins and 8,000 Litecoins (worth approximately $400,000 at the prevailing market prices at the time)
to the wrong customers. The Federal Bureau of Investigation published an announcement that the Democratic People’s Republic of
Korea (North Korea) was responsible for the theft of approximately $1.5 billion USD in virtual assets from cryptocurrency exchange,
Bybit, on or about February 21, 2025.

A disruption of the internet may affect
bitcoin operations, which may adversely affect the bitcoin industry and an investment in the Trust.

The Bitcoin network relies on the Internet.
A significant disruption of Internet connectivity (i.e., one that affects large numbers of users or geographic regions) could disrupt
the Bitcoin network’s functionality and operations until the disruption in the Internet is resolved. A disruption in the
Internet could adversely affect an investment in the Trust or the ability of the Trust to operate.

26 

The Bitcoin network’s decentralized
governance structure