Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 205

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 205
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 Condition, the Sponsor generally seeks to stake as much of the Trust's HBAR as is practicable (i.e., up to 100%) at all times, with the remainder of the Trust's HBAR remaining unstaked in order to address the various exceptions and other considerations described herein. The approximate percentage of the Trust’s HBAR that is staked each day will be reported the following day at 4:00 p.m. New York time, on www.etfs.grayscale.com/hbar.

Under the Staking Arrangements, any Staking Consideration earned will accrue automatically on a periodic basis by the Hedera Network to the Trust’s wallets administered by the Custodian. Periodically, the Trust will either (i) distribute HBAR received as Staking Consideration to the Trust’s beneficiaries (likely using a liquidating agent), (ii) sell that HBAR for cash and distribute the proceeds to the Trust’s beneficiaries, (iii) retain the HBAR in the Trust, (iv) pay a portion of the Staking Consideration to the Sponsor (the “Sponsor's Staking Fee”) as partial consideration for its facilitation of the Staking Arrangements or (v) a combination of the foregoing, in the Sponsor’s sole discretion. Prior to the effectiveness of this registration statement and the listing of the shares on NASDAQ and before engaging in Staking, the Sponsor expects to implement a Staking Policy with respect to the Trust, which describes the frequency of, and conditions under which the Trust will make such distributions, if any, to the Trust’s beneficiaries. The Sponsor will make such Staking Policy available to shareholders on the Sponsor’s website. The Trust (through the Custodian) will maintain control and remain the record and beneficial owner of the staked tokens at all times, and the tokens will remain associated with the Trust’s wallet.

The Staking Arrangements are expected to generally be on market terms, consistent with those typically offered by leading digital asset firms that offer staking functionality. Both the Custodian and the Staking Provider may be entitled to receive a portion of the staking rewards; the total amount for both parties is expected to range between approximately 5% and 10% of the gross staking rewards earned, payable out of the Staking Consideration that would otherwise be earned by the Trust. The portion of the Staking Consideration received by the Trust will be net of any portions of the Staking Consideration payable to the Custodian and the Staking Provider. This range