Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 119

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 119
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On January 3, 2025, GSO voluntarily withdrew as a Sponsor of the Trust pursuant to the terms of the Trust Agreement, and, effective May 3, 2025, GSIS is the sole remaining Sponsor of the Trust.

Quantitative and Qualitative Disclosures about Market Risk

The Trust Agreement does not authorize the Trust to borrow for payment of the Trust’s ordinary expenses. The Trust does not engage in transactions in foreign currencies which could expose the Trust or holders of Shares to any foreign currency related market risk. The Trust does not invest in derivative financial instruments and has no foreign operations or long-term debt instruments.

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Business</div>

Overview of the Trust and the Shares

Grayscale Hedera Trust ETF (the “Trust”) is a Delaware Statutory Trust that was formed on August 12, 2025 by the filing of the Certificate of Trust with the Delaware Secretary of State in accordance with the provisions of the Delaware Statutory Trust Act (“DSTA”). The Trust’s purpose is to hold “HBAR”, which are digital assets that are created and transmitted through the operations of the peer-to-peer Hedera Network, a decentralized network of computers that operates on cryptographic protocols. There are several key features of the Hedera Network. Approximately 42.4 billion HBAR have entered circulation as of June 30, 2025. As of June 30, 2025, the 24-hour trading volume of HBAR was approximately $115.3 million. As of June 30, 2025, the aggregate market value of HBAR was $6.4 billion. As of September 8, 2025, HBAR was the eighteenth largest digital asset by market capitalization, as tracked by CoinMarketCap.com.

As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on HBAR per Share) to reflect the value of the HBAR held by the Trust, including any HBAR earned as Staking Consideration (to the extent that the Staking Condition is satisfied and Staking is implemented), determined by reference to the Index Price, less the Trust’s expenses and other liabilities. The Trust does not seek to generate returns beyond tracking the price of HBAR and any HBAR earned as Staking Consideration (to the extent that the Staking Condition is satisfied and Staking is implemented). There can be no assurance that the Trust will be able to achieve its investment objective. The Trust will not utilize leverage, derivatives