Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 5

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 5
---
 and references to the Trust’s future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. You should specifically consider the numerous risks described in “Risk Factors” in this prospectus. Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including:

recent developments in the digital asset economy which have led to extreme volatility and disruption in digital asset markets, a loss of confidence in participants of the digital asset ecosystem, significant negative publicity surrounding digital assets broadly and market-wide declines in liquidity;

the extreme volatility of trading prices that many digital assets, including HBAR, have experienced in recent periods and may continue to experience, which could cause the value of the Shares to be volatile and/or have a material adverse effect on the value of the Shares;

the recency of the development of digital assets and the uncertain medium-to-long term value of the Shares due to a number of factors relating to the capabilities and development of blockchain technologies and to the fundamental investment characteristics of digital assets;

the value of the Shares depending on the acceptance of digital assets, such as HBAR, which represent a new and rapidly evolving industry;

the value of the Shares relating directly to the value of HBAR then held by the Trust, the value of which may be highly volatile and subject to fluctuations due to a number of factors;

the risk that validators may suffer losses due to Staking (as defined herein), or Staking may prove unattractive to validators, which could adversely affect the Hedera Network;

a temporary or permanent “fork” or a “clone”, which could adversely affect the value of the Shares;

the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms, which may adversely affect the value of digital assets and, consequently, the value of the Shares;

the limited history of the Index;

the lack of active trading markets for the Shares, which may result in losses on investors’ investments at the time of disposition of Shares;

the possibility that illiquid markets may exacerbate losses or increase the variability between the Trust’s NAV and its market price;

the possibility that there may be less liquidity or wider spreads in the market for the Shares as compared to the shares of other spot HBAR exchange-traded products,