What Is the Main Custody Challenge Avoided by Using Cash Settlement for Bitcoin Futures? ▴ Learn

What Is the Main Custody Challenge Avoided by Using Cash Settlement for Bitcoin Futures?

The main challenge avoided is the secure storage and transfer of a large quantity of Bitcoin. Physical settlement would require the clearing house or counterparties to manage private keys, multi-signature wallets, and the associated cybersecurity risks.

Cash settlement removes the need for this complex and high-stakes digital asset custody.

What Specific Logistical Challenges Are Avoided by Using Cash Settlement for Bitcoin Options?

How Does a Public Key Relate to a Private Key?

What Is the Relationship between a Public Key and a Private Key in ECDSA?

How Do Hardware Wallets Mitigate the Risk of Public Key Exposure?