Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 95

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 95
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 exist and, as a result, the price of the Shares may fall or otherwise
diverge from NAV,” and the Trust is unable to engage replacement Authorized Participants or Liquidity Providers on commercially
acceptable terms or at all, then the creation and redemption processes of the Trust or the arbitrage mechanism used to keep the
Trust’s Shares trading in line with NAV could be negatively affected.

The lack of full insurance and Shareholders’
limited rights of legal recourse against the Trust, Trustee, Sponsor, Administrator, Cash Custodian, Bitcoin Custodian and Additional
Bitcoin Custodian expose the Trust and its Shareholders to the risk of loss of the Trust’s bitcoins for which no person
or entity is liable.

Neither the Trust nor the Sponsor insure the Trust’s
bitcoin. The Trust is not a banking institution or otherwise a member of the FDIC or Securities Investor Protection Corporation
(“SIPC”) and, therefore, neither, Shareholders cannot be assured that either the Bitcoin Custodian or the Additional
Bitcoin Custodian will maintain adequate insurance in respect of the bitcoin they hold for the
Trust, that such coverage will cover losses with respect to the Trust’s bitcoins, or that sufficient insurance proceeds
will be available to cover the Trust’s losses in full. The Bitcoin Custodian’s insurance may not cover the type of
losses experienced by the Trust. Alternatively, the Trust may be forced to share such insurance proceeds with other clients or
customers of the Bitcoin Custodian, which could reduce the amount of such proceeds that are available to the Trust. The Trust
is not a named insured under the Bitcoin Custodian’s insurance policies, though the Bitcoin Custodian has represented to
the Sponsor that the insurance covers customer losses, including losses suffered by the Trust, arising from specified events,
including fraud, theft, and cybersecurity breaches. In addition, the bitcoin insurance market is limited, and the level of insurance
maintained by the Bitcoin Custodian may be substantially lower than the assets of the Trust, or the amount of claims against the
Bitcoin Custodian of all of the customers whose losses are covered by the Bitcoin Custodian’s insurance coverage. While
the Bitcoin Custodian maintains certain capital reserve requirements depending on the assets under custody, and such capital reserves
may provide additional means to cover client asset losses, the Trust cannot be assured that the Bitcoin Custodian will maintain
capital reserves sufficient to cover actual or potential losses with respect to the Trust’s digital assets.

Furthermore, under the Custody Agreement, the Bitcoin
Custodian’s liability