Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 116

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 116
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The inconsistency in applying money transmitting licensure
requirements to certain businesses may make it more difficult for these businesses to provide services, which may affect consumer
adoption of bitcoin and its price. In an attempt to address these issues, the Uniform Law Commission passed a model law in July
2017, the Uniform Regulation of Virtual Currency Businesses Act, which has many similarities to the BitLicense and features a
multistate reciprocity licensure feature, wherein a business licensed in one state could apply for accelerated licensure procedures
in other states. It is still unclear, however, how many states, if any, will adopt some or all of the model legislation.

Law enforcement agencies have often relied on the transparency
of blockchains to facilitate investigations. However, certain privacy-enhancing features have been, or are expected to be, introduced
to a number of digital asset networks. If the Bitcoin network were to adopt any of these features, these features may provide
law enforcement agencies with less visibility into transaction-level data.

Shareholders do not have the protections associated
with ownership of Shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.

The 1940 Act is designed to protect investors by preventing
insiders from managing investment companies to their benefit and to the detriment of public investors, such as: the issuance of
securities having inequitable or discriminatory provisions; the management of investment companies by irresponsible persons; the
use of unsound or misleading methods of computing earnings and asset value; changes in the character of investment companies without
the consent of investors; and investment companies from engaging in excessive leveraging. To accomplish these ends, the 1940 Act
requires the safekeeping and proper valuation of fund assets, restricts greatly transactions with affiliates, limits leveraging,
and imposes governance requirements as a check on fund management.

The Trust is not registered as an investment company
under the 1940 Act, and the Sponsor believes that the Trust is not required to register under such act. Consequently, Shareholders
do not have the regulatory protections provided to investors in investment companies.

The Trust will not hold or trade in commodity interests
regulated by the CEA, as administered by the CFTC. Furthermore, the Sponsor believes that the Trust is not a commodity pool for
purposes of the CEA, and that neither the Sponsor nor the Trustee is subject to regulation by the CFTC as a commodity pool operator
or a commodity trading advisor in connection with the operation of the Trust. Consequently