Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 54

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 54
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 or decrease in trading volume on Digital Asset Markets;

investment and trading activities of large investors that invest directly or indirectly in HBAR;

a “short squeeze” resulting from speculation on the price of HBAR, if aggregate short exposure exceeds the number of Shares available for purchase;

an active derivatives market for HBAR or for digital assets generally;

a final determination that HBAR is a security or changes in HBAR’s status under the federal securities laws;

monetary policies of governments, trade restrictions, currency devaluations and revaluations and regulatory measures or enforcement actions, if any, that restrict the use of HBAR as a form of payment or the purchase of HBAR on the Digital Asset Markets;

global or regional political, economic or financial conditions, events and situations, such as the novel coronavirus outbreak;

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fees associated with processing an HBAR transaction and the speed at which HBAR transactions are settled on the Hedera Network;

interruptions in service from or closures or failures of major Digital Asset Trading Platforms;

decreased confidence in Digital Asset Trading Platforms due to the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms;

increased competition from other forms of digital assets or payment services; and

the Trust’s own acquisitions or dispositions of HBAR, since there is no limit on the amount of HBAR that the Trust may acquire.

In addition, there is no assurance that HBAR will maintain its value in the long or intermediate term. In the event that the price of HBAR declines, the Sponsor expects the value of the Shares to decline proportionately. The value of HBAR as represented by the Index Price or by the Trust’s principal market may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for future appreciation in value, if any. The Sponsor believes that momentum pricing of HBAR has resulted, and may continue to result, in speculation regarding future appreciation in the value of HBAR, inflating and making the Index Price more volatile. As a result, HBAR may be more likely to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the Index Price and could adversely affect the value of the Shares.

Due to the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms,