Are There Any Physically Settled Crypto Futures Contracts?
While the vast majority of cryptocurrency futures, especially perpetuals, are cash-settled, there are a few exceptions, primarily in the institutional space. Some regulated exchanges offer physically settled Bitcoin futures contracts, where the actual Bitcoin is delivered upon expiration.
These are typically aimed at large institutions and are less common than the cash-settled contracts.
Glossar
Physically Settled Crypto
Settlement ⎊ Physically settled crypto derivatives represent a class of contracts where the obligation at expiry is fulfilled through the direct delivery of the underlying cryptocurrency asset, rather than a cash settlement.
Physically Settled
Settlement ⎊ Physically settled derivatives contracts require the actual transfer of the underlying asset from the short position holder to the long position holder at maturity.
Physically Settled Crypto Futures
Delivery ⎊ Physically settled crypto futures represent contractual obligations to exchange specified amounts of an underlying cryptocurrency at a predetermined future date, differing from cash-settled contracts by requiring actual asset transfer.
Regulated Exchanges
Exchange ⎊ Regulated exchanges, within the context of cryptocurrency, options trading, and financial derivatives, represent platforms subject to oversight by governmental or self-regulatory bodies, ensuring adherence to established rules and legal frameworks.
Physically Settled Bitcoin Futures
Delivery ⎊ Physically Settled Bitcoin Futures are derivative contracts that mandate the actual transfer of Bitcoin from the seller to the buyer upon the contract's expiration date.