Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 230

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 230
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 HBAR consists of separate lots with separate tax bases and/or holding periods, the U.S. Holder will be treated as having sold the Share Percentage of each such lot. Gain or loss recognized by a U.S. Holder on a sale or other disposition of Shares will generally be short-term capital gain or loss if the U.S. Holder’s holding period for the HBAR underlying such Shares is one year or less and long-term capital gain or loss if the U.S. Holder’s holding period for the HBAR underlying such Shares is more than one year. The deductibility of capital losses is subject to significant limitations.

If, in the future, In-Kind Regulatory Approval is obtained and the Trust redeems all or a portion of a U.S. Holder’s Shares in exchange for the underlying HBAR represented by the redeemed Shares, such redemption generally would not be a taxable event to the U.S. Holder. The U.S. Holder’s tax basis in the HBAR received in the redemption generally would be the same as the U.S. Holder’s tax basis for the portion of its pro rata share of the HBAR held in the Trust immediately prior to the redemption that was attributable to the Shares redeemed, determined as described above, and the U.S. Holder’s tax basis in its remaining pro rata portion, if any, of the HBAR held in the Trust after the redemption would be equal to the tax basis of its pro rata share of the total amount of the HBAR held in the Trust immediately prior to the redemption, less the U.S. Holder’s tax basis in the HBAR received in the redemption. The U.S. Holder’s holding period with respect to the HBAR received would generally include the period during which the U.S. Holder held the Shares so redeemed. A subsequent sale of the HBAR received in such redemption would generally be a taxable event.

After any sale or other disposition of fewer than all of a U.S. Holder’s Shares, the U.S. Holder’s tax basis in its pro rata share of the HBAR held in the Trust immediately after the disposition will equal the tax basis in its pro rata share of the total amount of the HBAR held in the Trust immediately prior to the disposition, less the portion of that tax basis that is taken into account in determining the amount of gain or loss recognized by the U.S. Holder on the

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disposition (or, in the case of a redemption pursuant to an In-Kind Order, if In