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

Cash settlement avoids the complex logistical challenges of managing the physical delivery of Bitcoin upon option exercise or expiration. These challenges include coordinating the transfer of private keys, ensuring secure wallet infrastructure, and managing the irreversible nature of blockchain transactions.

It simplifies the process to a single fiat or stablecoin transfer.

What Is the Main Benefit of Cash Settlement for Institutional Investors Focused Purely on Price Exposure?
What Is the Concept of “Early Exercise” and Why Is It Usually Avoided?
Why Is Cash Settlement Often Preferred for Highly Volatile Assets?
What Are the Operational Challenges of Cross-Margining across Different Crypto Exchanges?