Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 108

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 108
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2023, First Republic Bank was closed by the California Department of Financial Protection and Innovation, which appointed the
FDIC as receiver. Following a bidding process, the FDIC entered into a purchase and assumption agreement with JPMorgan Chase Bank,
National Association, to acquire the substantial majority of the assets and assume certain liabilities of First Republic Bank
from the FDIC.

If the Cash Custodian, the Bitcoin Custodian, or the
Banks or money market funds at which the Bitcoin Custodian holds customer cash balances, including those associated with the Trust’s
Fiat Account, were to experience financial distress or its financial condition is otherwise affected, the Cash Custodian’s
or Bitcoin Custodian’s ability to provide services to the Trust could be affected. Moreover, the future failure of a bank
or money market fund at which the Trust (including through the Fiat Account) maintains cash, could result in losses to the Trust,
to the extent the balances are not subject to deposit insurance, notwithstanding the regulatory requirements to which the Cash
Custodian is subject or other potential protections. In addition, the Trust may maintain cash balances with the Cash Custodian
in the Fiat Account with the that are not insured or are in excess of the FDIC’s insurance limits, or which are maintained
by the Cash Custodian or Bitcoin Custodian at money market funds (in the case of the Fiat Account) and subject to the attendant
risks (e.g., “breaking the buck”). As a result, the Trust could suffer losses.

The Sponsor is solely responsible for determining
the value of the bitcoin holdings and bitcoin holdings per Share, and any errors, discontinuance or changes in such valuation
calculations may have an adverse effect on the value of the Shares.

The Sponsor has the exclusive authority to determine
the Trust’s NAV and the Trust’s NAV per share, which it has delegated to the Administrator. The Administrator will
determine the Trust’s bitcoin holdings and bitcoin holdings per Share on a daily basis as soon as practicable after 4:00
p.m. ET on each business day. The Administrator’s determination is made utilizing data from the operations of the Trust
and the MarketVectorTM Bitcoin Benchmark Rate, calculated at 4:00 p.m. ET on such day. To the extent that the bitcoin
holdings or bitcoin holdings per Share are incorrectly calculated, the Sponsor will not be liable (absent gross negligence or
wilful misconduct) for any error and such misreporting of valuation data could adversely affect