Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 60

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 60
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 differences in fee structures or administrative procedures on different Digital Asset Trading Platforms. For example, based on data provided by the Index Provider, during the twelve months ended June 30, 2025, the maximum differential between the 4:00 p.m., New York time spot price of any single Digital Asset Trading Platform included in the Index and the Index Price was 1.41% and the average of the maximum differentials of the 4:00 p.m., New York time, spot price of each Digital Asset Trading Platform included in the Index and the Index Price was 0.66%. During this same period, the average differential between the 4:00 p.m., New York time, spot prices of all the Digital Asset Trading Platforms included in the Index and the Index Price was 0.01%. To the extent such prices differ materially from the Index Price, investors may lose confidence in the Shares’ ability to track the market price of HBAR, which could adversely affect the value of the Shares.

A decline in the adoption of HBAR or the Hedera Network could negatively impact the Trust.

The Sponsor will not have any strategy relating to the development of HBAR and the Hedera Network. However, a lack of expansion in usage of HBAR and the Hedera Network could adversely affect an investment in Shares.

The further development and acceptance of the Hedera Network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are difficult to evaluate. The slowing, stopping or reversing of the development or acceptance or usage of the Hedera Network may adversely affect the price of HBAR and therefore an investment in the Shares. The further adoption of HBAR will require growth of the Hedera Network. Adoption of HBAR will also require an accommodating regulatory environment.

The use of digital assets such as HBAR to, among other things, buy and sell goods or services or facilitate cross-border payments is part of a new and rapidly evolving industry that employs digital assets based upon computer-generated mathematical and/or cryptographic protocols. The Hedera Network is a prominent, but not unique, part of this industry. The growth of this industry is subject to a high degree of uncertainty, as new assets and technological innovations continue to develop and evolve.

Today, speculators make up a significant portion of users of HBAR and other cryptocurrencies. Certain merchants and major retail and commercial businesses have only recently begun accepting HBAR and the Hedera Network as a means of payment for goods and services. Speculation may contribute to outsized price volatility