Company: HODL
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000930413-25-002440
Chunk: 3

Company: VanEck Bitcoin ETF
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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100.00%

The accompanying notes
are an integral part of these financial statements.

4

VANECK BITCOIN ETF

Notes to Unaudited Financial Statements

June 30, 2025

Note 1. Organization:

VanEck Bitcoin ETF (the “Trust”), a Delaware statutory
trust, is an exchange-traded fund that issues common shares of beneficial interest in an ownership of the Trust (the “Shares”).
The Shares are traded on the Cboe BZX Exchange, Inc. (the “Exchange”). The Trust’s investment objective is to
reflect the performance of the price of bitcoin less the net operating expenses of the Trust. The Trust is managed and controlled
by VanEck Digital Assets, LLC (the “Sponsor”), a wholly-owned subsidiary of Van Eck Associates Corporation (“VanEck”).
The CSC Delaware Trust Company is the “Trustee” of the Trust.

Note 2. Significant Accounting Policies:

A.Basis of Preparation and Use of Estimates

The preparation of financial statements in conformity with U.S.
generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

The Trust qualifies as an investment company solely for accounting
purposes and not for any other purpose and follows accounting and reporting requirements of Accounting Standards Codification
(“ASC”) Topic 946 Financial Services—Investment Companies (“ASC Topic 946”), but is
not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

 B.  Cash

Cash, if any, represents cash deposits held at a major financial
institution and is subject to credit risk to the extent its balance exceeds the federally insured limits. As of June 30, 2025,
and December 31, 2024, the Trust did not hold cash.

 C. Investment Valuation

The Trust values its investment in bitcoin and other assets
and liabilities at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants on the measurement date.

The Trust identifies and determines the bitcoin principal market
(or in the absence of a principal market, the most advantageous market) for GAAP financial statement purposes consistent with
the application of fair value measurement framework in Financial Accounting Standards Board (“FASB”) ASC 820 at 11:59
p.m