Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 259

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 259
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of digital assets for U.S. federal income tax purposes could adversely affect the value of the Shares.

As discussed above, many significant aspects of
the U.S. federal income tax treatment of digital assets, such as bitcoin, are uncertain, and it is unclear what guidance on the treatment
of digital assets for U.S. federal income tax purposes may be issued in the future. It is possible that any such guidance would have an
adverse effect on the prices of digital assets, including on the price of bitcoin in digital asset exchanges, and therefore may have an
adverse effect on the value of the Shares.

Because of the evolving nature of digital assets,
it is not possible to predict potential future developments that may arise with respect to digital assets, including forks, airdrops and
similar occurrences. Such developments may increase the uncertainty with respect to the treatment of digital assets for U.S. federal income
tax purposes. Moreover, certain future developments could render it impossible, or impracticable, for the Trust to continue to be treated
as a grantor trust for U.S. federal income tax purposes.

Future developments in the treatment of digital
assets for tax purposes other than U.S. federal income tax purposes could adversely affect the value of the Shares.

The taxing authorities of certain states, including
New York, (i) have announced that they will follow the Notice with respect to the treatment of digital currencies for state income tax
purposes and/or (ii) have issued guidance exempting the purchase and/or sale of digital currencies for fiat currency from state sales
tax. Other states have not issued any guidance on these points, and could take different positions (e.g., imposing sales taxes on purchases
and sales of digital assets for fiat currency), and states that have issued guidance on their tax treatment of digital currencies (or
other digital assets) could update or change their tax treatment of digital currencies (or other digital assets). It is unclear what further
guidance on the treatment of digital currencies for state or local tax purposes may be issued in the future. A state or local government
authority’s treatment of bitcoin may have negative consequences, including the imposition of a greater tax burden on investors in
bitcoin or the imposition of a greater cost on the acquisition and disposition of bitcoin generally.

The treatment of digital assets for tax purposes
by non U.S. jurisdictions may differ from the treatment of digital assets for U.S. federal, state or local tax purposes. It is possible,
for example, that a non U.S. jurisdiction would