Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 114

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 114
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 independently of the price of HBAR and may fall or otherwise diverge from NAV. Furthermore, in the event that the market for HBAR should become relatively illiquid and thereby materially restrict opportunities for arbitraging by delivering HBAR in return for Baskets, the price of the Shares may diverge from the price of HBAR.

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Use of Proceeds</div>

Proceeds received by the Trust from the issuance and sale of Baskets[, other than the Seed Shares issued to the Seed Capital Investor,] will consist of HBAR deposited with the Trust in connection with creations. Such HBAR will only be (i) owned by the Trust, (ii) transferred (or converted to U.S. dollars, if necessary) to pay the Trust’s expenses, (iii) distributed or otherwise disposed of in connection with the redemption of Baskets, (iv) liquidated in the event that the Trust terminates or as otherwise required by law or regulation or (v) used in Staking, only if (and, then, only to the extent that) the Staking Condition relating to the qualification of the Trust as a grantor trust for U.S. federal income tax purposes is satisfied and subject to compliance with any additional requirements that may arise in connection with satisfaction of the Staking Condition.

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Management’s Discussion and Analysis of Financial

Condition and Results of Operations</div>

The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our audited financial statements and related notes included elsewhere in this prospectus, which have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this prospectus, particularly in “Risk Factors” and “Forward-Looking Statements.”

Trust Overview

The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees. The Trust holds HBAR and, from time to time on a periodic basis, will issue Creation Baskets in exchange for deposits of HBAR (or cash to acquire HBAR) and redeem Baskets in exchange for HBAR (or proceeds from the disposition of HBAR) from the Trust.