Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 104

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 104
---
 were steep increases in the value of certain
digital assets, including bitcoin, and multiple market observers asserted that digital assets were experiencing a “bubble.”
These increases were followed by steep drawdowns throughout 2022 in digital asset trading prices, including for bitcoin. In the
2021-2022 cycle, the price of bitcoin peaked at $67,734 and bottomed at $15,632, representing a 77% drawdown. These episodes of
rapid price appreciation followed by steep drawdowns have occurred multiple times throughout bitcoin’s history, including
in 2011, 2013-2014, and 2017-2018, before repeating again in 2021-2022. Digital asset prices have continued to fluctuate in 2025.
For example, bitcoin lost approximately 14% of its value according to some sources in mid-October 2025 as part of wider digital
asset market turmoil, widely attributed to global trade tensions, which triggered a number of dislocations in the digital asset
market (the “October 2025 Flash Crash”), including liquidations of up to $20 billion in collateral in the form of various
digital assets (including, but not limited to, bitcoin) securing trades (particularly perpetual futures contracts and various forms
of financing transactions), along with reported service interruptions, halted orders, forced unwinding of trades, and other issues,
across centralized and decentralized exchanges.

Extreme volatility may persist, and the value of the Shares may significantly
decline in the future without recovery. The digital asset markets may still be experiencing a bubble or may experience a bubble
again in the future. For example, in the first half of 2022, each of Celsius Network, Voyager Digital Ltd., and Three Arrows Capital
declared bankruptcy, resulting in a loss of confidence in participants of the digital asset ecosystem and negative publicity surrounding
digital assets more broadly. In November 2022, FTX Trading Ltd. (“FTX”), one of the largest digital asset platforms
by volume at the time, halted customer withdrawals amid rumors of the company’s liquidity issues and likely insolvency, which
were subsequently corroborated by its CEO. Shortly thereafter, FTX’s CEO resigned and FTX and many of its affiliates filed
for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar proceedings around
the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and CFTC brought
civil