Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 206

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 206
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 reflects prevailing market conditions and depends on the specific commercial arrangements negotiated. However, the Trust will negotiate certain provisions between the Trust and the Custodian as well as between the Custodian and the Staking Provider as necessary or helpful to preserve the Trust’s status as a grantor trust and the security of the Trust’s HBAR, as well as to address governmental, policy or regulatory concerns. In addition, the Staking Provider’s compensation is expected to be an agreed percentage of block rewards and transaction fees generated by the validating activities, unlike certain alternative staking arrangements under which a staking provider may be compensated as an agreed percentage of HBAR staked. In addition, the Sponsor may be entitled to receive a fee in the form of the Sponsor’s Staking Portion in connection with the Staking Arrangements, payable out of the Staking Consideration that would otherwise be earned by the Trust.

The Trust will have no right to direct the Staking Provider in the conduct of validation activities, except to stake, un-stake and withdraw its staked HBAR pursuant to instructions delivered to the Custodian, and will not bear any expenses incurred by the Staking Provider in conducting those activities. In particular, the amount of any Staking Consideration that the Trust receives will not be determined with reference to any expenses incurred by the Custodian or the Staking Provider. The Staking Arrangements will not include any obligation of the Trust to continue staking its HBAR, or for the Custodian or the Staking Provider to continue the Staking Arrangements, other than to the extent the Trust’s HBAR cannot immediately be un-staked due to requirements of the Hedera protocol. There may also be instances where the Staking Provider may pause or terminate its staking validation due to its own independent assessment of the vulnerabilities of the Hedera Network which would result in the Trust’s

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HBAR not being staked for a period of time. The Sponsor anticipates that the Hedera protocol and the Staking Arrangements will permit withdrawal of staked HBAR at regular intervals. The Sponsor believes that market practice for Provider-Facilitated Staking arrangements has largely become standardized, with little variation in terms, and therefore, the Sponsor anticipates that the Staking Arrangements will generally align with the current practice of Staking Providers’ other arrangements. Accordingly, and because transitioning to a new Staking Provider involve friction costs, the Sponsor does not expect the Trust to change Staking Providers frequently