Singapore Exchange (SGX) has announced plans to launch Bitcoin perpetual futures contracts in the second half of 2025, targeting institutional and professional investors. This move is subject to approval from the Monetary Authority of Singapore (MAS).
According to a spokesperson for SGX, the new offering aims to broaden institutional access to cryptocurrency markets while maintaining a regulated trading environment. The launch aligns with a global trend of established exchanges entering the Bitcoin derivatives market, driven by increasing institutional demand and favorable regulatory shifts.
Perpetual Futures: A Popular Product with Risks
SGX’s Bitcoin perpetual futures will have no expiration date, mirroring similar products widely traded on offshore platforms like Binance and OKX. While these contracts have gained popularity, they have also been associated with high risks, notably due to their role in the collapse of FTX’s trading platform.
SGX is positioning its Moody’s Aa2-rated platform as a more secure and regulated alternative for digital asset derivatives trading. This approach aims to attract investors looking for a safer option in the volatile crypto market.
Growing Competition in the Crypto Futures Market
SGX is not alone in eyeing the growing demand for Bitcoin futures. In January 2024, EDX Markets, a digital asset firm backed by Citadel Securities, revealed plans to introduce similar products in Singapore. Additionally, Bitnomial, based in Chicago, is preparing to launch perpetual futures in the U.S. market later this year.
A New Financial Product with Traditional Roots
While perpetual futures are relatively new to the crypto space, they have similarities with traditional financial products. For example, Japan Exchange Group offers rolling-spot gold futures, allowing investors exposure to gold prices without requiring physical delivery.
The perpetual futures model, first introduced by BitMEX in 2016, uses a funding rate system to balance long and short positions, offering continuous market exposure without fixed expiration dates.
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