Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 227

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 227
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aking Condition is satisfied, any staking income). When a U.S. Holder purchases Shares solely for cash, (i) the U.S. Holder’s initial tax basis in its pro rata share of the HBAR held in the Trust will be equal to the amount paid for the Shares and (ii) the U.S. Holder’s holding period for its pro rata share of such HBAR will begin on the date of such purchase. If, in the future, In-Kind Regulatory Approval is obtained and a U.S. Holder acquires Shares in exchange for HBAR, (i) the U.S. Holder’s initial tax basis in its pro rata share of the HBAR held in the Trust would be equal to the U.S. Holder’s tax basis in the HBAR that the U.S. Holder transferred to the Trust and (ii) the U.S. Holder’s holding period for its pro rata share of such HBAR generally would include the period during which the U.S. Holder held the HBAR that the U.S. Holder transferred to the Trust. The Ruling & FAQs confirm that if a taxpayer acquires tokens of a digital asset at different times and for different prices, the taxpayer has a separate tax basis in each lot of such tokens. Under the Ruling & FAQs, if, in the future, In-Kind Regulatory Approval is obtained and a U.S. Holder that owns more than one lot of HBAR contributes a portion of its HBAR to the Trust in exchange for Shares, the U.S. Holder could designate the lot(s) from which such contribution will be made, provided that the U.S. Holder is able to identify specifically which HBAR it is contributing and to substantiate its tax basis in that HBAR. In general, if a U.S. Holder acquires Shares (i) solely for cash at different prices or (ii) if In-Kind Regulatory Approval is obtained, (a) partly for cash and partly in exchange for a contribution of HBAR or (b) in exchange for a contribution of HBAR with different tax bases, the U.S. Holder’s share of the Trust’s HBAR will consist of separate lots with separate tax bases. In addition, in this situation, the U.S. Holder’s holding period for the separate lots may be different. In addition, if the Staking Condition is satisfied, any HBAR received as part of Staking Consideration that the Trust acquires will constitute a separate lot with a separate tax basis and holding period.

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