Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 69

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 69
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aries, such as exchanges, that support stablecoins, could impact individuals’ willingness to trade on
trading venues that rely on stablecoins, reduce liquidity in the bitcoin market, and affect the value of bitcoin, and in turn
impact an investment in the Shares. Given Bitfinex is currently a component of the MarketVectorTM Bitcoin Benchmark
Rate and Bitfinex and Tether are understood to be under common ownership and management, problems with Tether specifically could
potentially affect pricing of transactions on Bitfinex or otherwise disrupt Bitfinex’s operations.

New competing digital assets may pose
a challenge to bitcoin’s current market position, resulting in a reduction in demand for bitcoin, which could have a negative
impact on the price of bitcoin and may have a negative impact on the performance of the Trust.

The Bitcoin network and bitcoin, as an
asset, hold a “first-to-market” advantage over other digital assets. This first-to-market advantage has resulted in
the Bitcoin network evolving into the most well-developed network of any digital asset. The Bitcoin network enjoys the largest
user base and has more mining power in use to secure the Bitcoin Blockchain than any other digital asset. Having a large mining
network provides users confidence regarding the security and long-term stability of the Bitcoin network. This in turn creates
a domino effect that inures to the benefit of the Bitcoin network – namely, the advantage of more users and miners makes
a digital asset more secure, which potentially makes it more attractive to new users and miners, resulting in a network effect
that potentially strengthens the first-to-market advantage. However, despite the first-mover advantage of the Bitcoin network
over other digital assets, it is possible that real or perceived shortcomings in the Bitcoin network, or technological, regulatory
or other developments, could result in a decline in popularity and acceptance of bitcoin and the Bitcoin network, and other digital
currencies and trading systems could become more widely accepted and used than the Bitcoin network, which could lead to a decline
in the value of bitcoin.

Failure of funds that hold digital assets
to receive SEC approval to list their shares on exchanges could adversely affect the value of the Shares.

41 

There have been a growing number of attempts
to list on national securities exchanges the shares of funds that hold digital assets. These investment vehicles attempt to provide
institutional and retail investors exposure to markets for digital assets and related products. The exchange listing of shares
of digital asset funds would create more opportunities for institutional and retail investors to invest