VanEck's Journey with Bitcoin

An investment in the VanEck Bitcoin Trust involves significant risk, and may not be suitable for all investors. We use the generic term “ETF” to refer to exchange-traded investment vehicles, including those that are required to register under the Investment Company Act of 1940, as amended (the “40 Act”), as well as other exchange-traded products which are not subject to the registration of the ‘40 Act.

The Trust is not an investment company registered under the Investment Company Act of 1940 (“1940 Act”) or a commodity pool for the purposes of the Commodity Exchange Act (“CEA”). Shares of the Trust are not subject to the same regulatory requirements as mutual funds. As a result, shareholders of HODL do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA. Please view complete disclosures pertaining to the Trust below.

From its early days as a fringe concept, Bitcoin has grown to become a formidable asset, capturing the attention of investors worldwide.

Just as VanEck has been at the forefront of gold investing since the firm’s inception, VanEck has played a pivotal role in shaping the broader adoption of Bitcoin as a strategic allocation in investment portfolios.

A Timeline of VanEck’s Journey with Bitcoin

2009: Bitcoin is born

• Bitcoin was introduced to the world by an anonymous entity, Satoshi Nakamoto. Bitcoin was designed to be a decentralized digital currency, free from governmental oversight.

2010: Bitcoin’s first commercial transaction

• The first known commercial transaction using Bitcoin was the infamous purchase of two pizzas for 10,000 BTC. At that time, Bitcoin was worth only fractions of a penny.

2013: Bitcoin hits $1,000

• Bitcoin's price soared to $1,000, marking a significant milestone and garnering attention from mainstream investors.

2017: VanEck enters the crypto conversation

• VanEck recognizes that digital assets could provide both an alternative to existing currencies and gold, and technology to lower costs in the payments and financial industries. The firm starts to provide educational resources to help investors better understand Bitcoin, cryptocurrencies and other digital assets, and the role they play within a portfolio.

2017: Bitcoin’s meteoric rise and futures trading

• Bitcoin’s price skyrocketed to nearly $20,000, drawing parallels to gold’s bull market in the 1970s. Additionally, the introduction of Bitcoin futures trading opened the doors for institutional investors, reminiscent of when gold futures were first introduced, providing legitimacy and stability to the market.

2017: VanEck becomes first ETF issuer to file for futures-based Bitcoin ETF

• On August 11, 2017, VanEck filed an S-1 for a Bitcoin futures ETF, becoming the first ETF issuer to file for an ETF that would invest in Bitcoin futures.

2017: VanEck subsidiary MarketVector Indexes unveils digital assets benchmark indexes

• On October 23, 2017, MarketVector launched a series of digital assets indexes designed to track the performance of the otherwise fragmented global digital assets markets, and became the first regulated index provider to meet investment industry benchmarking standards for digital assets indexes.

2018: VanEck files for spot Bitcoin ETF

• On June 6, 2018, VanEck filed for a spot Bitcoin exchange-listed product (in partnership with SolidX). We believe this structure gives investors a more efficient vehicle in which to gain direct Bitcoin exposure via a traditional broker, without paying roll costs associated with futures. The SEC subsequently rejected all spot BTC ETF applications due to concerns of “market manipulation”

2020: Bitcoin halving event occurs

• The Bitcoin network experiences a halving event (which occurs approximately every four years), and the incentives for mining new blocks are reduced by half. This incident brings increased attention to Bitcoin’s finite supply.

2020: VanEck launches spot Bitcoin ETN in Europe

• The firm’s European arm launches the VanEck Bitcoin ETN (VBTC) on November 19, 2020. VBTC provides Europeans exchange traded access to spot Bitcoin exposure without the hassle of self-custody.

2021: VanEck builds its digital assets team

• In 2021, VanEck began committing more resources to building out of its digital assets research and investment team, bringing on board more crypto natives with knowledge of and passion for the digital assets space.

2021: El Salvador adopts Bitcoin as legal tender

• El Salvador became the first country to allow Bitcoin to be used in any transactions. Bitcoin joins the US dollar, which the country had adopted in 2021, as legal tender, and as part of the initiative, the Salvadoran government launched a digital wallet to promote the use of Bitcoin.

2021: MarketVector establishes sector classification system for digital assets

• MarketVector created the MarketVector Digital Asset Classification System in order to provide an efficient investment tool for capturing the breadth, depth, and progress of crypto sectors.

2021: VanEck leads $50M raise for Cadenza Ventures Crypto Fund

• Cadenza will use the funds to invest in crypto platforms and blockchain technologies internationally.

2022: VanEck introduces the first NFT to be launched by an asset manager

• On 5/2/2022, VanEck launched and distributed the VanEck Community NFT. This initiative was the first of its kind among asset managers. It offers exclusive access to an inclusive community that is both free and provides real-world utility.

2023: VanEck launches Ethereum Strategy ETF

• VanEck launched the Ethereum Strategy ETF (EFUT), offering investors exposure to Ether futures through a regulated and familiar structure. The firm also announced it will donate 10% of its profits to the Protocol Guild to fund Ethereum core development for 10 years.

2023: VanEck Bitcoin Trust (HODL) launches

• SEC approves spot bitcoin ETF applications for the first time. VanEck launches the VanEck Bitcoin Trust (HODL) and pledges 5% of profits to support Bitcoin core developers.

VanEck’s Long-Term Commitment to Bitcoin

Just as VanEck was a pioneer in gold investing, the firm has taken significant strides in bringing Bitcoin to a broader investor audience. By providing educational content, advocating for regulation, and introducing innovative investment vehicles, VanEck continues to play a pivotal role in the integration of Bitcoin into traditional investment portfolios. VanEck remains committed to empowering investors with the knowledge and tools needed to navigate this exciting and dynamic asset class.