Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 212

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 212
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 quantum computing create the risk that the cryptography underlying the Bitcoin network could become ineffective,
    which, if realized, could compromise the security of the Bitcoin network, or allow a malicious actor to compromise the wallets
    holding bitcoin owned by the Trust or others on the Bitcoin network, which would result in losses to Shareholders. While various
    actors in the Bitcoin community are taking steps to enable the uses of cryptographic algorithms that would be resistant to
    advanced quantum computers, there is no guarantee that new quantum-proof architectures will be built and appropriate transitions
    will be implemented across the network at scale in a timely manner; any such changes could require the achievement of broad
    consensus within the Bitcoin network community and a fork (or multiple forks), and there can be no assurance that such consensus
    would be achieved or the changes implemented successfully. See “-The Bitcoin network’s decentralized governance
    structure may negatively affect its ability to grow and respond to challenges” and “-A temporary or permanent
    “fork” could adversely affect the value of the Shares.” If any of the foregoing were to occur, it could
    result in losses to Shareholders. In any of these circumstances, a malicious actor may be able to compromise the security
    of the Bitcoin network or take the Trust’s bitcoin, which would adversely affect the value of the Shares. Moreover,
    the functionality of the Bitcoin network may be negatively affected such that it is no longer attractive to users, thereby
    reducing or even eliminating demand for bitcoin. Even if another digital asset other than bitcoin were affected by similar
    circumstances, any reduction in confidence in the source code or cryptography underlying digital assets generally could negatively
    affect the demand for digital assets and therefore adversely affect the value of the Shares.

Moreover, because digital assets, including bitcoin, have been in existence
for a short period of time and are continuing to develop, there may be additional risks in the future that are impossible to predict
as of the date of this Report.

Shareholders do not have the protections associated with ownership
of Shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.

The 1940 Act is designed to protect investors by preventing insiders
from managing investment companies to their benefit and to the detriment of public investors, such as: the issuance of securities
having inequitable or discriminatory provisions; the management of investment companies by irresponsible persons; the use of unsound
or misleading methods of computing earnings and asset value; changes in the character