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

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 25
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ilitated Staking. The Staking Provider will be the node operator and will be obligated to operate the validator through which the Trust’s HBAR is staked to ensure that validation occurs. The Trust’s HBAR would be staked directly from the Trust’s wallets administered by the Custodian and perform any related validation activities. The Trust will retain control of its staked HBAR because (1) the staked HBAR will remain in the Trust's wallet administered by the Custodian (rather than transferred to a wallet address controlled by the Staking Provider) and (2) the Trust (rather than the Staking Provider) will retain the ability through the Custodian to un-stake its HBAR. Because staked HBAR will remain in the Trust wallet administered by the Custodian, even when staked, the Trust's HBAR will not be commingled with the HBAR of any other HBAR holder in connection with Staking, such as the Staking Provider or others who stake to the Staking Provider. The Trust will not itself undertake any validation activities, and the Sponsor will not be required to perform any services. The Sponsor anticipates that it will engage in Staking with respect to all of the Trust’s HBAR at all times, except as needed as further described herein. The Trust’s HBAR would be un-staked (or not staked in the first instance) only under certain circumstances described in the Trust Agreement and under “Description of the Shares—Staking.” The Staking Arrangements are expected to generally be on market terms, consistent with those typically offered by leading digital asset firms that offer staking functionality. Both the Custodian and the Staking Provider may be entitled to receive a portion of the staking rewards; the total amount for both parties is expected to range between approximately 5% and 10% of the gross staking rewards earned, payable out of the Staking Consideration that would otherwise be earned by the Trust. The portion of the Staking Consideration received by the Trust will be net of any portions of the Staking |

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|                                           | Consideration payable to the Custodian and the Staking Provider. This range reflects prevailing market conditions and depends on the specific commercial arrangements negotiated between the Trust and the Custodian as well as between the Custodian and the Staking Provider. However, the Trust will negotiate certain provisions as necessary or helpful to preserve the Trust’s status as a grantor trust and the security of the Trust’s H