Why Might a Trader Prefer Cash Settlement over Physical Settlement?

A trader might prefer cash settlement to avoid the operational complexities and costs associated with managing the physical transfer and storage of the underlying cryptocurrency. Cash settlement is simpler, faster, and eliminates delivery risk.

It is also preferred if the trader's intent is purely speculative, not to acquire or dispose of the physical asset.

Does the Margin Requirement Differ for Cash-Settled versus Physically-Settled Contracts?
Why Might a Large Institution Prefer Physically Settled Crypto Futures?
Why Is Cash Settlement Preferred for Volatile Assets like Cryptocurrencies?
Which Response Is Generally Preferred to Maintain the Position?
Why Are Most Crypto Options Contracts Also Cash-Settled?
Why Is a Delivery Squeeze Less Likely in Bitcoin than in Gold?
Does the Black-Scholes Model Fully Account for the Complexities of Physical Crypto Settlement?
Why Might a Trader Prefer a Cash-Settled Futures Contract?

Glossar