Company: HODL
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000930413-25-001795
Chunk: 7

Company: VanEck Bitcoin ETF
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 the Trust.

The Trust holds its bitcoin at the Bitcoin Custodian and at the
Additional Bitcoin Custodian, both of which are regulated third-party custodians that carry insurance (in the case of the Additional
Bitcoin Custodian, such insurance is carried by its parent, Coinbase Inc., and is intended to cover the loss of client assets held
by Coinbase Inc. and its subsidiaries, including the Additional Bitcoin Custodian) and are responsible for safekeeping of bitcoin
owned by the Trust and holding private keys that provide access to the bitcoin in the Trust’s bitcoin account.

State Street Bank and Trust Company serves as the Trust’s
administrator, transfer agent and cash custodian.

7

VANECK BITCOIN ETF

Notes to Unaudited Financial Statements (continued)

March 31, 2025

Note 4. Related Parties(a)

The Sponsor is considered to be a related party to the Trust.

MarketVector Indexes GmbH is the index sponsor and index administrator
for the MarketVector Bitcoin Benchmark Rate, which is used by the Trust to determine its NAV. MarketVector Indexes GmbH is an indirectly
wholly-owned subsidiary of VanEck.

Van Eck Securities Corporation, a marketing agent to the Trust,
is a wholly-owned subsidiary of VanEck.

VanEck was the initial seed investor (“Seed Capital Investor”)
on December 21, 2023. On January 4, 2024, the 8,000 Shares held by the Seed Capital Investor were redeemed for cash and the Seed
Capital Investor purchased the “Seed Creation Baskets,” comprising of 5,800,000 Shares at a per-Share price of $12.50.
Total proceeds to the Trust from the sale of the Seed Creation Baskets were $72,500,000, which resulted in the Trust receiving
1,640.92 bitcoin. As of December 31, 2024 and March 31, 2025, the Seed Capital Investor’s ownership in the Trust represents
approximately 9% and 7%, respectively of net assets.

VanEck is a minority interest holder in the parent company of
the Bitcoin Custodian, representing less than 1% of its equity.

(a)Share amounts in Note 4 have been adjusted to reflect the 4 for 1 share split that occurred on February 14, 2025.

Note 5. Capital Share Transactions

Investors can buy and sell Shares of the Trust in secondary market
transactions through brokers. Shares trade on the Exchange under the