Why Is the Cost of Carry Less Relevant for a Physically-Settled Crypto Futures Contract?

While financing costs still apply, the 'storage' and 'insurance' components of the cost of carry are less relevant in the traditional sense for a physically-settled crypto futures contract. Cryptocurrencies are digital assets, so they do not incur the high physical storage and transport costs associated with commodities.

However, security costs for hot/cold storage and the cost of capital remain relevant factors in the overall pricing.