In a key move for the crypto derivatives market, the Singapore Exchange (SGX) has announced plans to introduce Bitcoin perpetual futures in the second half of 2025.
This development positions SGX as a key player in the growing integration of digital assets into traditional financial systems, catering to institutional and professional investors.
The initiative reflects Singapore’s objective to solidify its status as a global hub for regulated crypto and web3 innovation, aligning with the broader trend of traditional exchanges embracing crypto products.
Bitcoin perpetual futures are derivative contracts that allow traders to speculate on Bitcoin’s price movements without actually owning the underlying asset.
Unlike standard futures contracts, perpetual futures have no expiration date, enabling continuous trading with leverage.
This flexibility makes them popular in the crypto trading space, particularly among institutional investors seeking exposure to digital assets in a regulated environment.
As widely reported, SGX’s decision to exclude retail traders underscores the high-risk nature of these instruments and the exchange’s focus on providing a secure platform for sophisticated market participants.
The launch is subject to approval from the Monetary Authority of Singapore (MAS), ensuring compliance with the city-state’s stringent regulatory framework under the Payment Services Act.
SGX’s entry into crypto derivatives may be considered a strategic response to rising institutional demand for digital asset products.
Industry professionals generally view this as a step toward legitimizing Bitcoin as a mainstream investment asset.
Shi Le, managing director at crypto trading firm Auros, highlighted that SGX’s regulated alternative to existing crypto exchanges could significantly enhance investor trust by mitigating counterparty risks.
Similarly, Chengyi from SGX emphasized that the product aims to integrate Bitcoin into professional portfolios, reinforcing its role in traditional finance.
This move follows Singapore’s proactive regulatory approach, with the MAS granting 13 cryptocurrency licenses in 2024 to firms like OKX and BitGo, more than doubling the licenses issued in 2023.
The launch also positions SGX competitively among global exchanges.
With institutions like Standard Chartered and Fidelity active in crypto custody, SGX’s perpetual futures could catalyze innovation in regulated markets.
Darius Sit from QCP noted that this could be the first of many Bitcoin products from SGX, potentially expanding the exchange’s crypto offerings in the foreseeable future.
Singapore’s Aa2 credit rating from Moody’s further bolsters SGX’s appeal, offering a trusted / fairly reliable platform amid concerns about unregulated crypto exchanges.
This development aligns with transformative global trends, as traditional financial institutions increasingly explore crypto-focused opportunities.
In Asia, Singapore and Hong Kong are vying to become the region’s crypto capital, with both jurisdictions fostering regulated innovations.
SGX’s initiative is expected to enhance liquidity and provide hedge funds and asset managers with a robust platform for trading Bitcoin derivatives.
Saad Ahmed from Gemini noted that this reflects the growing maturity of the crypto industry in the Asia-Pacific, where institutional interest is surging.
SGX’s Bitcoin perpetual futures mark a key moment for Singapore’s financial ecosystem, reinforcing its position as a hub for digital assets.