Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 62

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 62
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 as represented by the Index. Trading on a limited number of Digital Asset Trading Platforms may result in less favorable prices and decreased liquidity of HBAR and, therefore, could have an adverse effect on the value of the Shares.

Purchasing activity associated with acquiring HBAR required for the creation of Baskets may increase the market price of HBAR on the Digital Asset Markets, which will result in higher prices for the Shares. Alternatively, selling activity associated with sales of HBAR withdrawn from the Trust in connection with the redemption of Baskets may decrease the market price of HBAR on the Digital Asset Markets, which will result in lower prices for the Shares. Increases or decreases in the market price of HBAR may also occur as a result of the purchasing or selling activity of other market participants. Other market participants may attempt to benefit from an increase or decrease in the market price of HBAR that may result from increased purchasing or selling activity of HBAR connected with the creation or redemption of Baskets. Consequently, the market price of HBAR may decline immediately after Baskets are created. Decreases in the market price of HBAR may also occur as a result of sales in Secondary Markets by other market participants. If the Index Price declines, the value of the Shares will generally also decline.

Competition from the emergence or growth of other digital assets could have a negative impact on the price of HBAR and adversely affect the value of the Shares.

As of September 8, 2025, HBAR is the eighteenth largest digital asset by market capitalization, as tracked by CoinMarketCap.com. As of June 30, 2025, the digital assets tracked by CoinMarketCap.com had a total market capitalization of approximately $3,072.1 billion (including the approximately $6.4 billion market cap of HBAR), as calculated using market prices and total available supply of each digital asset, excluding stablecoins and tokens pegged to other assets. HBAR faces competition from a wide range of digital assets. HBAR is also supported by fewer trading platforms than more established digital assets, such as Bitcoin and Ether, which could impact its liquidity. HBAR is in direct competition to other real-time payment and settlement systems such as Bitcoin, Ethereum, and Stellar. Competition from the emergence or growth of alternative digital assets in the financial payment and settlement sectors could have a negative impact on the demand for, and price of, HBAR and thereby adversely affect an investment in the value of the Shares.

Investors may also invest in HBAR through means other