Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 61

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 61
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 Network services, such as its cost and who will serve as intermediaries, among other questions.

If increases in throughput on the Bitcoin
network lag behind growth in usage of bitcoin, average fees and settlement times may increase considerably. For example, the Bitcoin
network has been, at times, at capacity, which has led to increased transaction fees. Since January 1, 2019, bitcoin transaction
fees have increased from $0.18 per bitcoin transaction, on average, to a high of $60.95 per transaction, on average, on April
20, 2021. As of December 31, 2022, bitcoin transaction fees were $1.17 per transaction, on average. Increased fees and decreased
settlement speeds could preclude certain uses for bitcoin (e.g., micropayments), and could reduce demand for, and the price of,
bitcoin, which could adversely impact the value of the Shares. In May 2023, events related to the adoption of ordinals, which
are a means of inscribing digital content on the bitcoin blockchain, caused transaction fees to temporarily spike above $30 per
transaction. As of January 31, 2025, bitcoin transaction fees were averaging $1.54 per transaction.

Many developers are actively researching
and testing scalability solutions for public blockchains. However, there is no guarantee that any of the mechanisms in place or
being explored for increasing the scale of settlement of the Bitcoin network transactions will be effective, or how long these
mechanisms will take to become effective, which could adversely impact the value of the Shares.

Due to the unregulated nature and lack
of transparency surrounding the operations of bitcoin trading platforms, which may be subject to regulation in a relevant jurisdiction,
but may not be complying, they may experience fraud, manipulation, security failures or operational problems, which may adversely
affect the value of bitcoin and, consequently, the value of the Shares.

Digital asset trading platforms are relatively
new and, in some cases, unregulated. Many operate outside the United States. Furthermore, while many prominent digital asset trading
platforms provide the public with significant information regarding their ownership structure, management teams, corporate practices
and regulatory compliance, many digital asset trading platforms do not provide this information. Digital asset trading platforms
may not be subject to, or may not comply with, regulation in a similar manner as other regulated trading platforms, such as national
securities exchanges or designated contract markets. As a result, the marketplace may lose confidence