Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 41

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 a dramatic impact on the broader digital asset market, including the market for bitcoin.
A significant portion of the digital asset market continues to depend on stablecoins such as Tether and USDC. As such, any disruption
in the operation or perceived stability of these stablecoins such as a disorderly de-pegging event or a loss of market confidence
resulting in a run on reserves could lead to substantial market volatility across digital assets more broadly.

Additional risks such as operational failures (e.g., technical issues
that prevent settlement), concerns regarding the adequacy or transparency of reserve assets backing stablecoins, the use of unbacked
or undercollateralized stablecoins in potentially manipulative trading practices and regulatory scrutiny of stablecoin issuers
or intermediaries, including exchanges that facilitate stablecoin transactions, may also adversely affect market confidence and
liquidity. Further, these risks are underscored by recent legislative developments. On July 18, 2025, the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025 (“GENIUS Act”) was enacted, establishing a federal regulatory
framework for payment stablecoins. The GENIUS Act prohibits the issuance or use of payment stablecoins unless the issuer obtains
a qualifying license and complies with a range of regulatory requirements, including reserve backing with liquid assets, redemption
rights, governance standards, and operational transparency. The GENIUS Act also restricts the payment of interest on stablecoins
and imposes oversight on both bank and nonbank issuers. The enactment of the GENIUS Act, or the removal or migration of prominent
stablecoins from the Bitcoin network, could reduce the willingness of market participants to engage in digital asset transactions
that rely on stablecoins, diminish liquidity in the bitcoin market, and adversely affect the price of bitcoin. Any such developments
could, in turn, materially and adversely impact the value of the Shares.

Digital Asset Treasury Companies Risk

In recent times, a number of companies engaged in
businesses outside the digital assets industry have begun to hold their corporate treasuries in digital assets instead of in fiat
currency (“digital asset treasury companies”). In some cases, these companies have raised funds through financing or
securities offerings and applied the proceeds to purchase digital assets, including bitcoin.

Digital asset treasury companies are a relatively
new phenomenon and it is impossible to predict all of the risks they could pose to the Trust. On the one hand, digital asset treasury
companies may increase procyclical dynamics in the market