Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 241

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 241
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 value of the Shares and investors could suffer
a substantial loss on their investment in the Trust.

The value of the Shares will be adversely affected
if the Trust is required to indemnify the Sponsor, the Trustee, the Transfer Agent, the Bitcoin Custodian, the Additional Bitcoin
Custodian or the Cash Custodian under the trust documents.

Under the trust documents, each of the Sponsor, the
Trustee, the Transfer Agent, the Bitcoin Custodian, the Additional Bitcoin Custodian and the Cash Custodian has a right to be
indemnified by the Trust for certain liabilities or expenses that it incurs without gross negligence, bad faith or wilful misconduct
on its part. Therefore, the Sponsor, Trustee, Transfer Agent, the Bitcoin Custodian, the Additional Bitcoin Custodian or the Cash
Custodian may require that the assets of the Trust be used for indemnification in order to cover losses or liability suffered
by them. This would reduce the bitcoin holdings of the Trust and the value of the Shares.

Gemini serves as the Bitcoin Custodian for several
competing exchange-traded bitcoin products, and the Trust’s Cash Custodian and Liquidity Providers may also transact with
competing exchange-traded bitcoin products or with other companies in the digital assets industry, which could heighten interconnectedness
and contagion risks and adversely affect creation and redemption processes of the Trust.

By virtue of its prominent market position and capabilities,
and the relatively limited number of institutionally-capable providers of cryptoasset brokerage and custody services, Gemini serves
as the bitcoin custodian for several competing exchange-traded bitcoin products. Therefore, Gemini’s size and market share
creates the risk that Gemini may fail to properly resource its operations to support all such products that use its services,
and the broader risk that its concentrated focus on the industry could adversely affect its financial condition or disrupt its
operations if its customers in the digital assets industry experience problems or issues, which could harm the Trust, the Shareholders
and the value of the Shares. If Gemini were to favor the interests of certain products over others, it could result in inadequate
attention or comparatively unfavorable commercial terms to less favored products, which could adversely affect the Trust’s
operations and ultimately the value of the Shares. Similarly, although the Sponsor presently has no knowledge of the Cash Custodian’s
customer base, if and to the extent the Cash Custodian serves other competing exchange-traded cryptocurrency products or other
similar investment vehicles, it could conceivably divert the Cash