Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 272

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 272
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 increased use of technologies such as
the internet and the dependence on computer systems to perform necessary business functions, the Trust is susceptible to operational and
information security risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber-attacks include,
but are not limited to, gaining unauthorized access to digital systems for purposes of misappropriating assets or sensitive information,
corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized
access, such as causing denial-of-service attacks on websites. Cybersecurity failures or breaches of one or more of the Trust’s
service providers (including, but not limited to, MarketVector, the administrator, transfer agent, and the Bitcoin Custodian) have the
ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of the Shareholders
to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement
or other compensation costs, and/or additional compliance costs.

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In addition, substantial costs may be incurred
in order to prevent any cyber incidents in the future. The Trust and its Shareholders could be negatively impacted as a result. While
the Trust has established business continuity plans, there are inherent limitations in such plans.

The Trust and its service providers are subject to certain operational
risks. 

The Trust and its service providers, including
the Sponsor, Administrator, Transfer Agent, Bitcoin Custodian, Additional Bitcoin Custodian and Cash Custodian (as well as Authorized
Participants and market makers) may experience disruptions that arise from human error, processing and communications errors, counterparty
or third-party errors, or technology or systems failures, any of which may have an adverse impact on the Trust. Although the Trust and
its service providers seek to mitigate these operational risks through their internal controls and operational risk management processes,
these measures may not identify or may be inadequate to address all such risks. Additionally, the Bitcoin Custodian and the Additional
Bitcoin Custodian, which were established in 2015 and 2012, respectively, each have a limited operating company and experience, which
could heighten certain operational risks.

Risk Factors Related to ERISA

Notwithstanding the commercially reasonable efforts
of the Sponsor, it is possible that the underlying assets of the Trust will be deemed to include “plan assets” for the purposes
of Title I of ERISA or Section 4975 of the Code. If the assets of the Trust