Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 18

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 18
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 U.S. and state agencies, such as the SEC, have not made official pronouncements or issued guidance or rules regarding the treatment of HBAR. Similarly, the treatment of HBAR and other digital assets is often uncertain or contradictory in other countries. The regulatory uncertainty surrounding the treatment of HBAR creates risks for the Trust and its Shares. See “Risk Factors—Risk Factors Related to the Regulation of Digital Assets, the Trust and the Shares.”

Summary Risk Factors

Before you invest in the Shares, you should carefully consider all the information in this prospectus, including matters set forth under the heading “Risk Factors.” Some of the more significant challenges and risks relating to an investment in the Shares include those associated with the following:

Extreme volatility of trading prices that many digital assets, including HBAR, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value;

The medium-to-long term value of the Shares is subject 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 is dependent on the acceptance of digital assets, such as HBAR, which represent a new and rapidly evolving industry;

Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets;

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

The value of the Shares relates directly to the value of HBAR held by the Trust, the value of which may be highly volatile and subject to fluctuations;

The Shares may trade at a price that is at, above or below the Trust’s NAV per Share as a result of the non-current trading hours between NASDAQ and the Digital Asset Trading Platform Market;

Shareholders may suffer a loss on their investment if the Shares trade above or below the Trust’s NAV per Share;

Validators may suffer losses due to Staking, or Staking may prove unattractive to validators, which could adversely affect the Hedera Network;

A temporary or permanent “fork” or a “clone” could adversely affect the value of the Shares