Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 61

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 61
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, which in turn can make HBAR less attractive to merchants and commercial parties as a means of payment. A lack of expansion by HBAR into retail and commercial markets or a contraction of such use may result in a reduction in the price of HBAR, which could adversely affect an investment in the Trust.

In addition, there is no assurance that HBAR will maintain its value over the long term. The price of HBAR is subject to risks related to its usage. Even if growth in Hedera Network adoption occurs in the near or medium term, there is no assurance that HBAR usage will continue to grow over the long term. A contraction in use of HBAR may result in increased volatility or a reduction in the price of HBAR, which would adversely impact the value of the Shares.

The Index Price used to calculate the value of the Trust’s HBAR may be volatile, and purchasing and selling activity in the Digital Asset Markets associated with Basket creations and redemptions may affect the Index Price and Share trading prices, adversely affecting the value of the Shares.

The price of HBAR on public Digital Asset Trading Platforms has a very limited history, and during this history, HBAR prices on the Digital Asset Markets more generally, and on Digital Asset Trading Platforms individually, have been volatile and subject to influence by many factors, including operational interruptions. While the Index is designed to limit exposure to the interruption of individual Digital Asset Trading Platforms, the Index

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Price, and the price of HBAR generally, remain subject to volatility experienced by Digital Asset Trading Platforms, and such volatility could adversely affect the value of the Shares. For example, during the twelve months ended June 30, 2025, the Index Price ranged from $0.04 to $0.38, with the straight average being $0.16. The Sponsor has not observed a material difference between the Index Price and average prices from the constituent Digital Asset Trading Platforms individually or as a group. The price of HBAR more generally has experienced volatility similar to the Index Price during these periods. See “Business—Overview of theHedera Industry and Market—Historical HBAR Prices.”

Furthermore, because the number of Digital Asset Trading Platforms is limited, the Index will necessarily be comprised of a limited number of Digital Asset Trading Platforms. If a Digital Asset Trading Platform were subjected to regulatory, volatility or other pricing issues, the Index Provider would have limited ability to remove such Digital Asset Trading Platform from the Index, which could skew the price of HBAR