Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 31

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 31
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 binding on the IRS or any court. Accordingly, there can be no assurance
that the IRS will agree with the conclusions of counsel’s opinion and it is possible that the IRS or another tax authority
could assert a position contrary to one or all of those conclusions and that a court could sustain that contrary position. Neither
the Sponsor nor the Trustee will request a ruling from the IRS with respect to the classification of the Trust for U.S. federal
income tax purposes or with respect to any other matter. If the IRS were to assert successfully that the Trust is not classified
as a “grantor trust,” the Trust would likely be classified as a partnership for U.S. federal income tax purposes, which
may affect the timing and other tax consequences to the Shareholders, and might be classified as a publicly traded partnership
that would be taxable as a corporation for U.S. federal income tax purposes, in which case the Trust would be taxed in the same
manner as a regular corporation on its taxable income and distributions to Shareholders out of the earnings and profits of the
Trust would be taxed to Shareholders as ordinary dividend income. However, due to the uncertain treatment of digital assets for
U.S. federal income tax purposes, there can be no assurance in this regard. Except as otherwise indicated, the remainder of this
discussion assumes that the Trust is classified as a grantor trust for U.S. federal income tax purposes.

Taxation of U.S. Shareholders

Shareholders will be treated, for U.S. federal income tax purposes,
as if they directly owned a pro rata share of the underlying assets held in the Trust. Shareholders also will be treated as if
they directly received their respective pro rata shares of the Trust’s income, if any, and as if they directly incurred their
respective pro rata shares of the Trust’s expenses. In the case of a Shareholder that acquires its Shares as part of the
creation of a Basket (if In-Kind Regulatory Approval is obtained), the delivery of bitcoin to the Trust in exchange for a pro rata
share of the underlying bitcoin represented by the Shares will not be a taxable event to the Shareholder, and the Shareholder’s
tax basis and holding period for the Shareholder’s pro rata share of the bitcoin held in the Trust will be the same as its
tax basis and holding period for the bitcoin delivered in exchange therefor. For purposes of this discussion, and unless stated
otherwise, it is assumed that all of