Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 164

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 164
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 311 of the USA PATRIOT Act to impose
requirements on financial institutions that engage in CVC transactions with CVC mixers. The proposed rule, if adopted, would require
covered financial institutions to report to FinCEN any CVC transactions they process that involves CVC mixing within or involving
a jurisdiction outside the United States. The term “CVC mixing” covers more than just transactions that involve CVC
mixers like Tornado Cash, and seemingly could cover a broader range of conduct involving technologies, services, or methods that
have the effect of obfuscating the source, destination, or amount of a CVC transaction, whether or not the obfuscation was intentional.
If the rule were to be adopted as proposed and if the Bitcoin Blockchain were to be deemed to or were to adopt features which come
within the rule’s ambit, it could cause covered financial institutions - such as many digital asset platforms, or the Trust’s
service providers, such as the Cash Custodian - to reduce support for or cease offering services for bitcoin or to the Trust, which
could impair the utility of bitcoin, the value of the Shares and the Trust’s ability to operate in compliance with new laws
and regulations.

Prices of bitcoin may be affected due to stablecoins (including Tether
and USDC), the activities of stablecoin issuers and their regulatory treatment.

While the Trust does not invest in stablecoins, it may nonetheless be
exposed to risks that stablecoins pose for the bitcoin market and other digital asset markets. Stablecoins are digital assets designed
to have a stable value over time as compared to typically volatile digital assets and are typically marketed as being pegged to
a fiat currency, such as the U.S. dollar, at a certain value. Although the prices of stablecoins are intended to be stable, their
market value may fluctuate. This volatility has in the past apparently impacted the price of bitcoin. Stablecoins are a relatively
new phenomenon, and it is impossible to know all of the risks that they could pose to participants in the bitcoin market. Like
CBDCs, stablecoins could compete with, or replace, bitcoin and other digital assets as a medium of exchange or store of value.
In addition, some have argued that some stablecoins, particularly Tether, are improperly issued without sufficient backing in a
way that, when the stablecoin is used to pay for bitcoin, could cause artificial rather than genuine demand for bitcoin, thereby
artificially inflating the price of bitcoin