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What Are the Primary Risks Associated with the Physical Delivery of Cryptocurrency?

The primary risks include custody risk, which is the risk of loss or theft of the private keys or the cryptocurrency itself during transfer or storage. There is also logistical risk related to the secure and timely transfer of the digital asset between parties.

Furthermore, regulatory uncertainty and compliance costs for handling the physical asset add to the overall risk profile.

What Are the Primary Risks Associated with Holding Large Amounts of Cryptocurrency for Physical Settlement?
Does Physical Settlement Expose Traders to Greater Custody Risks?
How Does Physical Settlement Introduce More Logistical Complexity for Traders?
Why Are Most Cryptocurrency Futures Contracts Cash-Settled Instead of Physically Settled?