Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 176

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 176
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 bitcoin to decline in value.

Forks have occurred already to the Bitcoin network, including, but not
limited to, forks resulting in the creation of Bitcoin Cash (August 1, 2017), Bitcoin Gold (October 24, 2017) and Bitcoin SegWit2X
(December 28, 2017), among others. The only crypto asset to be held by the Trust will be bitcoin. The Trust has adopted procedures
to address situations involving a fork that results in the issuance of new alternative bitcoin that the Trust may receive. Typically,
the holder of bitcoin has no discretion in a hard fork; it merely has the right to claim the new forked asset on a pro rata basis
while it continues to hold the same number of bitcoin.

There have been other contentious disputes over changes to the Bitcoin
network’s source code, so far these have not led to hard forks. For example, the predominant software implementation used to access
the Bitcoin network is Bitcoin Core. The October 2025 release of the updated Bitcoin Core client (version 30) removed a long-standing
limit on the inclusion of non-transaction-related data in blocks, the effect of which is to permit larger amounts of arbitrary
data to be embedded in transactions. This change has prompted debate within the bitcoin community, though – because the change
is backwards-compatible, rather than a hard fork – certain previous versions of the Bitcoin Core client remain operable,
and it remains interoperable with other clients, such as Bitcoin Knots. Some participants have expressed concerns that such changes
could facilitate the inclusion of illegal or non-transaction-related content on the Bitcoin Blockchain, or introduce new or unknown
software vulnerabilities. In response, certain miners and users have reportedly adopted alternative client software implementations
to access the Bitcoin network, such as Bitcoin Knots. There is a risk that unresolved divisions could lead to community fragmentation
which, if they grew severe enough and were not resolved, eventually a future Bitcoin network hard fork, which may adversely affect
the security or stability of the Bitcoin network (such as if miners leave the original Bitcoin network for the forked network),
reduce or impede the adoption of bitcoin overall, or cause bitcoin or the Shares to lose value.

We refer to the right to receive any benefits arising from a fork, airdrop
(defined below), or similar event as an Incidental Right and any such virtual currency acquired through an Incidental Right as
IR Virtual Currency. The Trust has adopted the following procedures to address situations involving any