Related Parties |
6 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2026 | ||||
| Related Party Transactions [Abstract] | ||||
| Related Parties |
The Sponsor is considered to be a related party to the Trust. The Trust’s operations are supported by its Sponsor. As of June 30, 2026, the Sponsor did not own any Shares of the Trust.
On June 9, 2026, the Sponsor and the Trustee entered into a Second Amended and Restated Trust Agreement (the “Second A/R Trust Agreement”). The Second A/R Trust Agreement authorizes the Trust to participate in a staking program. All staking rewards are paid to the Sponsor as additional compensation and are not included in the Trust’s NAV. The Sponsor has sole authority to direct and manage all aspects of any staking program, including the decision to cause the Trust to participate or not participate in any staking program, the selection of any staking provider, the terms and conditions of any staking arrangements, and the amount and timing of HBAR to be staked, in each case without the consent of the Trust, the Trustee, or any shareholder. All staking rewards received by or on behalf of the Trust are the sole property of the Sponsor and are not considered part of the Trust’s estate or included in the calculation of the Trust’s HBAR holdings, creation HBAR amount, or NAV. The Sponsor is not liable to the Trust or any shareholder or beneficial owner for any loss or liability arising out of or in connection with the Trust’s participation in any staking program, the selection of any staking provider, the amount of HBAR staked, or any slashing, penalty, or loss of staked HBAR, provided that the Sponsor acted in good faith and without fraud, gross negligence, bad faith, or willful misconduct.
The Sponsor may amend, modify, waive, defer, or cancel such arrangements from time to time in its sole and absolute discretion. For the period June 12, 2026 (commencement of staking activity) through June 30, 2026, The staking program generated staking rewards of 649,021 HBAR representing a fair value of $45,165. As of June 30, 2026, 663,209,584 HBAR were staked representing a fair value of $46,157,486. |