Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 209

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 209
---
 redemption processes altogether.

If the process of creation and redemption
of Baskets encounters any unanticipated difficulties, the possibility for arbitrage transactions by Authorized Participants intended
to keep the price of the Shares closely linked to the price of bitcoin may not exist and, as a result, the price of the Shares
may fall or otherwise diverge from NAV.

The processes of creation and redemption
of Shares (which depend on timely transfers of bitcoin to and by the Bitcoin Custodian and through the Clearing Services) could
be disrupted or encounter challenges due to, for example, the price volatility of bitcoin, the insolvency, business failure or
interruption, default, failure to perform, security breach, or other problems affecting the Bitcoin Custodian, in its capacity
as Bitcoin

46 

Custodian under the Custody Agreement and the provider
of Clearing Services under the Clearing Agreement. Also, the change from the Trust’s originally contemplated model of in-kind
creations and redemptions to the current model involving cash creations and redemptions, could cause potential market participants,
such as the Authorized Participants and Liquidity Providers, who would otherwise be willing to purchase or redeem Baskets or bitcoin,
as applicable, to take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the
price of the underlying bitcoin, to decide not to take the risk that, as a result of those difficulties, they may not be able
to realize the profit they expect, and reduce their transactions with or even refrain entirely from transacting with the Trust,
which could disrupt the processes of creation and redemption of Shares. If such events rise to the level of an emergency or cause
creations and redemptions of Shares to be impracticable, the Sponsor may suspend the process of creation and redemption of Baskets.
Any disruptions to the process of creating and redeeming Shares could cause trading spreads, and the resulting premium or discount,
on Shares compared to NAV to widen. Alternatively, in the case of a Bitcoin network outage or other problems affecting the Bitcoin
network, the processing of transactions on the Bitcoin network may be disrupted, which in turn may prevent Liquidity Providers
from depositing or withdrawing bitcoin from their accounts at the Bitcoin Custodian, which in turn could affect the creation or
redemption of Baskets. If this is the case, the liquidity of the Shares may decline and the price of the Shares may fluctuate
independently of the price of bitcoin and may fall or otherwise diverge