Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 59

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 59
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 would receive if an active market did exist and, accordingly, a shareholder may suffer losses.

Possible illiquid markets may exacerbate losses or increase the variability between the Trust’s NAV and its market price.

HBAR is a novel asset with a limited trading history. Therefore, the markets for HBAR may be less liquid and more volatile than other markets for more established products, such as futures contracts for traditional physical commodities. It may be difficult to execute an HBAR trade at a specific price when there is a relatively small volume of buy and sell orders in the HBAR market. A market disruption can also make it more difficult to liquidate a position or find a suitable counterparty at a reasonable cost.

Market illiquidity may cause losses for the Trust. The large size of the positions that the Trust may acquire could increase the risk of illiquidity, by both making the positions more difficult to liquidate and increasing the losses incurred while trying to do so, should the Trust need to liquidate its HBAR. Any type of disruption or illiquidity will potentially be exacerbated due to the fact that the Trust will only invest in HBAR, which is highly concentrated.

As of the date of this filing, the total market value of the HBAR circulating supply is approximately $9.6 billion, comprised of approximately 42.4 billion HBAR. On average over the last 30 days, over any given 24-hour period, the reported global HBAR trading volume was approximately $223.8 million.

The Index has a limited history and a failure of the Index Price could adversely affect the value of the Shares.

The Index has a limited history and the Index Price is a composite reference rate calculated using trading price data from various Digital Asset Trading Platforms chosen by the Index Provider. The Index Provider may remove or

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add Digital Asset Trading Platforms to the Index in the future at its discretion. For more information on the inclusion criteria for Digital Asset Trading Platforms in the Index, see “Business—Overview of theHedera Industry and Market—The Index and the Index Price.”

Although the Index is designed to accurately capture the market price of HBAR, third parties may be able to purchase and sell HBAR on public or private markets not included among the constituent Digital Asset Trading Platforms of the Index, and such transactions may take place at prices materially higher or lower than the Index Price. Moreover, there may be variances in the prices of HBAR on the various Digital Asset Trading Platforms, including as a result of