Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 260

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 260
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 impose sales tax or value-added tax on purchases and sales of digital assets for fiat
currency. If a foreign jurisdiction with a significant share of the market of bitcoin users imposes onerous tax burdens on digital currency
users, or imposes sales or value-added tax on purchases and sales of digital assets for fiat currency, such actions could result in decreased
demand for bitcoin in such jurisdiction.

Any future guidance on the treatment of digital
assets for state, local or non U.S. tax purposes could increase the expenses of the Trust and could have an adverse effect on the prices
of digital assets, including on the price of bitcoin in digital asset exchanges. As a result, any such future guidance could have an adverse
effect on the value of the Shares.

A U.S. Tax-Exempt Shareholder may recognize
“unrelated business taxable income” as a consequence of an investment in Shares.

Under the guidance provided in the Ruling &
FAQs, hard forks, airdrops and similar occurrences with respect to digital currencies will under certain circumstances be treated as taxable
events giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized by a
U.S. Tax-Exempt Shareholder would constitute “unrelated business taxable income” (“UBTI”). Tax-exempt Shareholders
should consult their tax advisers regarding whether such Shareholder may recognize UBTI as a consequence of an investment in Shares.

Shareholders could incur a tax liability without
an associated distribution of the Trust.

In the normal course of business, it is possible
that the Trust could incur a taxable gain in connection with the sale of bitcoin (such as sales of bitcoin to obtain fiat currency with
which to pay the Sponsor Fee or

71

Trust expenses, and including deemed sales of bitcoin
as a result of the Trust using bitcoin to pay the Sponsor Fee or its expenses) that is otherwise not associated with a distribution to
Shareholders. Shareholders may be subject to tax due to the grantor trust status of the Trust even though there is not a corresponding
distribution from the Trust.

A hard “fork” of the Bitcoin Blockchain
could result in Shareholders incurring a tax liability.

If a hard fork occurs in the Bitcoin Blockchain,
the Trust could hold both the original bitcoin and the alternative new bitcoin. The IRS has held that a hard fork resulting in the creation
of new units of cryptocurrency is a taxable event giving rise to ordinary income. Moreover, if such an event occurs, the Trust