Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 15

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 15
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BAR which must be un-staked in order to fulfill a distribution in connection with a redemption (to the extent such distribution cannot be fulfilled utilizing the portion of the Trust’s HBAR that has not been staked, or through another mechanism to manage liquidity in connection with Redemption Orders contemplated by an opinion of a Tax Advisor, a Tax Ruling, or Tax Guidance that satisfies the Staking Condition) will be un-staked only after the redemption request is approved by the Trust, the Sponsor executes an un-stake or withdrawal transaction through the Custodian, and such transaction is processed by the Hedera Network. The Staking Provider will not be able to transfer unstaked HBAR or Staking Consideration to another address on the Hedera Network. As of the date of this filing, and subject to the satisfaction of the Staking 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 Sponsor will make such Staking