Singapore Exchange Enters Crypto Derivatives Market with Bitcoin Futures Offering

The Singapore Exchange (SGX) has revealed plans to introduce Bitcoin perpetual futures before the end of 2025, targeting institutional and professional investors. This marks SGX's strategic move to expand its product suite amid growing global interest in crypto assets. It aligns with broader trends of traditional financial institutions integrating crypto products. Notably, unlike traditional futures contracts, perpetual futures do not have an expiration date. This allows investors to trade continuously based on the direction of Bitcoin prices. Bolstering Institutional Confidence in Bitcoin Industry leaders believe SGX’s entry into crypto derivatives is a significant step in framing Bitcoin as a legitimate asset. Darius Sit, founder of the crypto-asset trading firm QCP, noted that SGX's Bitcoin product would serve as a strong signal to institutional investors. Specifically, he claimed it helps position Bitcoin not as a speculative asset but as one worthy of consideration as an investment-grade instrument. Ong Chengyi, APAC head of policy at Chainalysis, echoed this sentiment. Chengyi described the move as a step toward firmly establishing Bitcoin as a legitimate investment asset suitable for inclusion in professional portfolios. Shi Le, managing director at crypto trading firm Auros, pointed out that perpetual futures are popular in the crypto trading arena. However, SGX’s product introduces a regulated alternative. Given its familiar and accessible structure, this could appeal more to participants from traditional finance. Moreover, the product could be a hedging tool for institutions, similar to how ETFs brought crypto into mainstream investing. Furthermore, Chengyi highlighted that SGX’s Bitcoin perpetual futures offer a transparent avenue for institutional investors to enter the crypto market while mitigating counterparty risks.   According to Robert Krugman, Broadridge's executive, the launch could also prompt exchanges worldwide to consider offering comparable products.   Notably, SGX will prioritize risk management and market integrity as it introduces this new product. Etelka Bogardi of Norton Rose Fulbright emphasized that the exchange must follow stringent procedures under Singapore’s Securities and Futures Act. These procedures include tools like leverage limits, margin requirements, standardized contracts, and clearing controls. Looking Ahead With major global financial institutions like Standard Chartered and Fidelity already active in crypto custody, SGX’s entry into perpetual futures may only be the beginning. The launch could catalyze further institutional interest and set the stage for broader crypto product innovation in regulated markets. As QCP’s Darius Sit put it: “Hopefully, this is the first Bitcoin product of many to come.”