Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 129

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 129
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era Network is not to operate a payments system or store of value, like most public DLT networks, the Hedera Network requires a digital asset to properly operate and incentivize consensus and behavior on the DLT network. HBAR is the native digital asset of the Hedera Network. HBAR is used to power decentralized applications, build peer-to-peer transactional models, and protect the network from malicious actors.

HBAR Spot and Futures Markets

HBAR spot markets generally allow investors to open accounts with digital asset exchanges and then buy or sell HBAR via websites or mobile applications. Prices for HBAR trades on these markets are typically publicly reported. Investors wishing to trade HBAR on a digital asset platform must deposit an accepted government-issued currency or previously acquired digital assets into their platform account before they can purchase or sell HBAR. This process of setting up an account with a trading platform and executing trades is separate from, and should not be confused with, the process of transferring HBAR between addresses on the HederaHashgraph. The latter involves activities directly on the Hedera Network, while trading on digital platforms occurs within the exchange’s order book. The platform generally records an investor’s HBAR ownership in its internal books, not on the HederaHashgraph. HBAR is typically not transferred to the investor’s personal wallet unless they request a withdrawal to an off-platform HBAR address.

Outside of spot markets, HBAR can also be traded over-the-counter (OTC). The OTC market is predominantly institutional, with participants including firms that provide two-sided liquidity for HBAR, investment managers, proprietary trading firms, high-net-worth individuals, entities holding significant amounts of HBAR, and family offices. The OTC market offers a flexible environment in terms of quotes, pricing, and quantity, though it often involves large quantities of HBAR. There is no formal structure to the OTC market, nor an open meeting place for transactions. Parties involved in OTC trades typically agree on the price—often by phone or email—before one party initiates the transfer by sending HBAR to the buyer’s HBAR address. The buyer would then transfer the agreed-upon currency to the seller’s bank account. OTC trades are sometimes hedged and eventually settled on digital asset trading platforms.

In addition, Hedera futures and options trading occurs on exchanges in the United States regulated by the CFTC. The market for CFTC-regulated trading of Hedera derivatives has developed substantially. As of September 2, 2025, 2025