Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 65

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 65
---
again in the future. For example, in the first half of 2022, each of Celsius Network, Voyager Digital Ltd., and Three Arrows Capital
declared bankruptcy, resulting in a loss of confidence in participants of the digital asset ecosystem and negative publicity surrounding
digital assets more broadly. In November 2022, FTX Trading Ltd. (“FTX”), one of the largest digital asset platforms
by volume at the time, halted customer withdrawals amid rumors of the company’s liquidity issues and likely insolvency, which
were subsequently corroborated by its CEO. Shortly thereafter, FTX’s CEO resigned and FTX and many of its affiliates filed
for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar proceedings around
the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought
civil securities and commodities fraud charges, against certain of FTX’s and its affiliates’ senior executives, including
its former CEO. In addition, several other entities in the digital asset industry filed for bankruptcy following FTX’s bankruptcy
filing, such as BlockFi Inc. and Genesis Global Capital, LLC (“Genesis”). In response to these events (collectively,
the “2022 Events”), the digital asset markets have experienced extreme price volatility and other entities in the digital
asset industry have been, and may continue to be, negatively affected, further undermining confidence in the digital asset markets.
These events have also negatively impacted the liquidity of the digital asset markets as certain entities affiliated with FTX engaged
in significant trading activity. If the liquidity of the digital asset markets continues to be negatively impacted by these events,
digital asset prices, including bitcoin, may continue to experience significant volatility or price declines and confidence in
the digital asset markets may be further undermined. In addition, regulatory and enforcement scrutiny has increased, including
from, among others, the Department of Justice, the SEC, the CFTC, the White House and Congress, as well as state regulators and
authorities. These events are continuing to develop and the full facts are continuing to emerge. It is not possible to predict
at this time all of the risks that they may pose to the Trust, its service providers or to the digital asset industry as a whole.

The prices of some digital assets, including bitcoin, have fluctuated
significantly following the election of Donald Trump as president of the United States. Many expect this new administration to
facilitate a supportive regulatory