Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 238

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 238
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 the Trust to effect redemptions
for cash or pay the Sponsor Fee and, to the extent applicable, other Trust expenses, and in extraordinary circumstances, to effect
the liquidation of the Trust’s bitcoin. The Trust relies on the Cash Custodian and Bitcoin Custodian, in connection with
the Trust’s Fiat Account, to hold any cash related to the purchase or sale of bitcoin. To the extent that the Trust faces
difficulty establishing or maintaining banking relationships, the loss of the Trust’s banking partners, including the Cash
Custodian or the banks at which the Bitcoin Custodian, in connection with the Trust’s Fiat Account, maintains customer cash
balances (including the cash balance of the Trust held in the Fiat Account), or the imposition of operational restrictions by
these banking partners and the inability for the Trust to utilize other financial institutions may result in a disruption of creation
and redemption activity of the Trust, or cause other operational disruptions or adverse effects for the Trust. In the future,
it is possible that the Trust could be unable to establish accounts at new banking partners or establish new banking relationships,
or that the banks with which the Trust is able to establish relationships may not be as large or well-capitalized or subject to
the same degree of prudential supervision as the existing providers.

The Trust could also suffer losses in the event that
a bank or money market fund in which the Trust holds cash, including the cash associated with the Trust’s account at the
Cash Custodian or the Trust’s Fiat Account with the Bitcoin Custodian (which is held at the Bitcoin Custodian’s banks
or money market funds for the benefit of its customers, including the Trust), fails, becomes insolvent, enters receivership, is
taken over by regulators, enters financial distress, or otherwise suffers adverse effects to its financial condition or operational
status. Recently, some banks have experienced financial distress. For example, on March 8,

60

2023, the California Department of Financial Protection
and Innovation (“DFPI”) announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon
Valley Bank, (“SVB”), was closed by the DFPI, which appointed the FDIC, as receiver. Similarly, on March 12, 2023,
the New York Department of Financial Services took possession of Signature Bank and appointed the FDIC as receiver. A joint statement
by the Department of the Treasury, the Federal Reserve and the FDIC on March 12, 202