The Coyotes sent Hill and a 2022 seventh-round pick to the Sharks for 23-year-old goalie Josef Korenar and a 2022 second-rounder. It was completed before and announced after the trade freeze, which started Saturday.
Arizona also acquired forward Andrew Ladd and three future draft picks from New York in a move that gives the Islanders salary-cap space.
The Coyotes traded Hill because they could not protect the 25-year-old and starter Darcy Kuemper from the Kraken.
Hill is a restricted free agent with 49 games of NHL experience.
"Adin is an extremely competitive and athletic goaltender and he has played a significant amount of professional hockey games despite being only 25 years old," Sharks general manager Doug Wilson said. "We have been impressed with the trajectory of his play, particularly his ability to make saves in high-danger scoring opportunities. We look forward to having him in San Jose and being part of our goaltending unit."
The 35-year-old Ladd has 249 goals and 289 assists in 950 career NHL games with Carolina, Chicago, Atlanta/Winnipeg, Vegas and the Islanders. The Coyotes also received a 2021 second round draft pick, a conditional second round pick in 2022 and a conditional third round pick in 2023.
Protected lists for the expansion draft were due Saturday afternoon, and Seattle announces its picks Wednesday.