Grayscale Hedera Trust is a passively managed Delaware statutory trust that holds HBAR, the native digital asset of the Hedera Network, and trades on NASDAQ under the ticker "HBAR." The Trust's sole purpose is to give investors exposure to HBAR's price through a publicly traded security, without requiring investors to directly buy, custody, or manage digital assets. The Trust is sponsored by Grayscale Investments Sponsors, an indirect subsidiary of Digital Currency Group, and Coinbase Custody Trust Company holds the Trust's HBAR in cold storage. Shares are created and redeemed in blocks of 10,000 through Authorized Participants, which are registered broker-dealers. The Trust earns revenue solely through a Sponsor's Fee that accrues daily as a percentage of NAV, paid in HBAR transferred out of the Trust — meaning the amount of HBAR per share gradually declines over time. The Sponsor covers ordinary operating expenses out of this fee, while extraordinary expenses are borne by the Trust itself. The Trust is designed to eventually stake HBAR to earn additional rewards, but staking is currently prohibited pending a legal opinion or regulatory guidance confirming it won't affect the Trust's grantor trust tax status. Key risks include HBAR price volatility, regulatory uncertainty around whether HBAR could be classified as a security, and operational limitations around cash-only share creations and redemptions.