Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 172

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 172
---

    a particular digital asset may lack a financial incentive to maintain or develop the network or may lack the resources to
    adequately address emerging issues. Alternatively, some developers may be funded by companies whose interests are at odds
    with other participants in a particular digital asset network. A failure to properly monitor and upgrade the protocol of the
    Bitcoin network could damage that network.

    ●
    In the past, flaws in the source code for digital assets have been
    exposed and exploited, including flaws that disabled some functionality for users, exposed users’ personal information
    and/or resulted in the theft of users’ digital assets. The cryptography underlying bitcoin could prove to be flawed
    or ineffective, or developments in mathematics and/or technology, including advances in digital computing, algebraic geometry
    and quantum computing, could result in such cryptography becoming ineffective. Quantum computing technology is an emerging
    phenomenon which, because it is still developing, makes it difficult to predict its ultimate effect on the future value of
    bitcoin and other digital assets. However, if quantum computing technology

25

    is able to advance and significantly increase its capacity relative to the capacity of today’s
    leading quantum computers, it could potentially undermine the viability of many of the cryptographic algorithms used across
    the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like
    bitcoin. Advances in quantum computing create the risk that the cryptography underlying the Bitcoin network could become ineffective,
    which, if realized, could compromise the security of the Bitcoin network, or allow a malicious actor to compromise the wallets
    holding bitcoin owned by the Trust or others on the Bitcoin network, which would result in losses to Shareholders. While various
    actors in the Bitcoin community are taking steps to enable the uses of cryptographic algorithms that would be resistant to
    advanced quantum computers, there is no guarantee that new quantum-proof architectures will be built and appropriate transitions
    will be implemented across the network at scale in a timely manner; any such changes could require the achievement of broad
    consensus within the Bitcoin network community and a fork (or multiple forks), and there can be no assurance that such consensus
    would be achieved or the changes implemented successfully. See “-The Bitcoin network’s decentralized governance
    structure may negatively affect its ability to grow and respond to challenges” and “-A temporary or permanent
    “fork” could adversely affect the value of the Shares.” If any of the foregoing were to occur, it could
    result in losses to