Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 156

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 156
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 increase from time to time as a result of the creation of Baskets.

The creation of Baskets will require the delivery to the Trust of the amount of HBAR (or cash to acquire the amount of HBAR) represented by the Baskets being created. The creation of a Basket will be made only upon the delivery to the Trust of the number of whole and fractional HBAR represented by each Basket being created, the number of which is determined by dividing (x) the amount of HBAR owned by the Trust at 4:00 p.m., New York time, on the relevant trade date, after deducting the amount of HBAR representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the Index Price at such time, and carried to the eighth decimal place) by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one HBAR (i.e., carried to the eighth decimal place)), and multiplying such quotient by 10,000.

The Shares are redeemable in accordance with the provisions of the Trust Agreement and the relevant Participant Agreement. The operation of a redemption program allows Authorized Participants to take advantage of arbitrage opportunities created when the market value of the Shares deviates from the value of the Trust’s HBAR, less the Trust’s expenses and other liabilities, which may have the effect of reducing any premium at which the Shares trade on NASDAQ over such value or cause the Shares to trade at a discount to such value.

The amount of HBAR required to create a Basket is expected to gradually decrease over time due to the transfer or sale of the Trust’s HBAR to pay the Sponsor’s Fee and any Additional Trust Expenses.

The Sponsor will determine the Trust’s NAV on each business day as of 4:00 p.m., New York time, or as soon thereafter as practicable. The Sponsor will also determine the NAV per Share, which equals the NAV divided by the number of outstanding Shares. Each business day, the Sponsor will publish the Trust’s NAV and NAV per Share on the Trust’s website, www.etfs.grayscale.com/hbar,as soon as practicable after the Trust’s NAV and NAV per Share have been determined by the Sponsor. See “—Valuation of HBAR and Determination of NAV.”

The Trust’s assets will consist solely of HBAR, cash proceeds from the sale of HBAR and any rights of the Trust pursuant to any agreements, other than the Trust Agreement, to