Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 92

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 92
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 Custodian, could be required, as a result of judicial
or regulatory determinations, or could choose, to restrict or curtail the services it offers (whether in or from New York State
or generally), its licenses could be impacted, or its financial condition and ability to provide services to the Trust could be
affected as a result of the NYDFS Settlement,

53

NYAG Settlement, or other litigation. If the Bitcoin Custodian were to be
required or choose, as a result of litigation or regulatory action, to restrict, curtail, or terminate the services it offers,
it could negatively affect the Trust’s ability to operate, hold bitcoin, or process creations or redemptions of Baskets,
which could force the Trust to engage an alternate bitcoin custodian or to liquidate and could adversely affect the value of the
Shares.

Similarly, the Additional Bitcoin Custodian performs
essential functions in terms of safekeeping the Trust’s bitcoin in the Additional Bitcoin Vault Balance. If the Additional
Bitcoin Custodian fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem
Baskets, which could force the Trust to liquidate or adversely affect the price of the Shares.

On March 22, 2023, Coinbase, Inc., which is an affiliate
of the Additional Bitcoin Custodian, and its parent (such parent, “Coinbase Global” and together with Coinbase Inc.,
the “Relevant Coinbase Entities”) received a “Wells Notice” from the SEC staff stating that the SEC staff
made a “preliminary determination” to recommend that the SEC file an enforcement action against the Relevant Coinbase
Entities alleging violations of the federal securities laws, including the Exchange Act and the Securities Act. According to Coinbase
Global’s public reporting company disclosure, based on discussions with the SEC staff, the Relevant Coinbase Entities believe
these potential enforcement actions would relate to aspects of the Relevant Coinbase Entities’ Coinbase Prime service, spot
market, staking service Coinbase Earn, and Coinbase Wallet, and the potential civil action may seek injunctive relief, disgorgement,
and civil penalties. On June 6, 2023, the SEC filed a complaint against the Relevant Coinbase Entities in federal district court
in the Southern District of New York, alleging, inter alia: (i) that Coinbase Inc. has violated the Exchange Act by failing to
register with the SEC as a national securities exchange, broker-dealer, and clearing agency, in connection with activities involving
certain