Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 33

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 33
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 by the Trust should generally be determined by multiplying the Shareholder’s total basis for its share
of all of the bitcoin held in the Trust immediately prior to the sale, by a fraction the numerator of which is the amount of bitcoin
sold, and the denominator of which is the total amount of the bitcoin held in the Trust immediately prior to the sale. After any
such sale, a Shareholder’s tax basis for its pro rata share of the bitcoin remaining in the Trust should be equal to its
tax basis for its share of the total amount of the bitcoin held in the Trust immediately prior to the sale, less the portion of
such basis allocable to its share of the bitcoin that was sold.

Upon a Shareholder’s sale of some or all of its Shares (other
than a redemption), the Shareholder will be treated as having sold the portion or all, respectively, of its pro rata share of the
bitcoin held in the Trust at the time of the sale that is attributable to the Shares sold. Accordingly, the Shareholder generally
will recognize gain or loss on the sale in an amount equal to the difference between (a) the amount realized pursuant to the sale
of the Shares, and (b) the Shareholder’s tax basis for the portion of its pro rata share of the bitcoin held in the Trust
at the time of sale that is attributable to the Shares sold, as determined in the manner described in the preceding paragraph.
Based on current IRS guidance, such gain or loss (as well as any gain or loss realized by a Shareholder on account of the Trust
selling bitcoin) will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding
period of greater than one year in its pro rata share of the bitcoin that was sold. The Trust plans to treat a redemption of a
some or all of a Shareholder’s Shares, in exchange for cash, in the same manner as a sale of some or all of a Shareholder’s
Shares (as described above) for that amount of cash, though no assurance can be provided that the IRS will not take a different
position.

Gains or losses from the sale of bitcoin to fund cash redemptions
are expected to be treated as incurred by the Shareholder that is being redeemed, and the amount of such gain or loss generally
will equal the difference between (a) the amount realized pursuant to the sale of the bitcoin, and (b) the Shareholder’s
tax