But what’s the big deal? Doesn’t theoretical exposure represent actual exposure? First, most crypto futures in the market today are cash-settled. They involve a promise to pay a stipulated price on a specified date, but no actual crypto assets are involved in the transaction. The exposure is financial, not “real,” and comparing these instruments to actual transactions in an asset is misleading.
Second, even with physically delivered contracts, most traders do not hang on to their positions until maturity. It is relatively easy for options holders to either sell their contract or let it expire without exercising, and even physical futures holders are likely to offset their positions before expiry to lock in gains or stem losses.
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