Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 86

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 86
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 proportionally reflects the amount of bitcoin represented
by the Shares outstanding at the time of such creation unit being created. Assuming a constant bitcoin price, the trading price
of the Shares is expected to gradually decline relative to the price of bitcoin as the amount of bitcoin represented by the Shares
gradually declines.

Shareholders should be aware that the gradual decline
in the amount of bitcoin represented by the Shares will occur regardless of whether the trading price of the Shares rises or falls
in response to changes in the price of bitcoin.

The development and commercialization of the Trust
is subject to competitive pressures.

The Trust and the Sponsor face competition with respect
to the creation of competing products, including with respect to the potential creation of competing exchange-traded bitcoin products.
If the SEC were to approve many or all of the currently pending applications for such exchange-traded bitcoin products, many or
all of such products, including the Trust, could fail to acquire substantial assets, initially or at all. Such competing products
may become available for public exchange trading before the Trust and/or have a lower expense ratio than the Trust, which could
have a detrimental effect on the scale and sustainability of the Trust. The Sponsor’s competitors may have greater financial,
technical and human resources than the Sponsor. These competitors may also compete with the Sponsor in recruiting and retaining
qualified personnel. Smaller or early stage companies may also prove to be effective competitors, particularly through collaborative
arrangements with large and established companies. Accordingly, the Sponsor’s competitors may commercialize a product involving
bitcoin more rapidly or effectively than the Sponsor is able to, which could adversely affect the Sponsor’s competitive
position, the likelihood that the Trust will achieve initial market acceptance and the Sponsor’s ability to generate meaningful
revenues from the Trust.

Security threats to the Trust’s accounts with
the Bitcoin Custodian or the Additional Bitcoin Custodian could result in the halting of Trust operations and a loss of Trust
assets or damage to the reputation of the Trust, each of which could result in a reduction in the price of the Shares.

Security breaches, computer malware and computer hacking
attacks have been a prevalent concern in relation to digital assets. The Sponsor believes that the Trust’s bitcoins held
in the Trust’s Bitcoin Account and Clearing Account with the Bitcoin Custodian and the Additional Bitcoin Account with the
Additional Bitcoin Custodian will be an appealing target to hackers or malware distributors seeking to destroy, damage or steal
the Trust’s bitcoins and will only become more appealing as the Trust’s assets grow.