Key Takeaways
- If approved, SGX’s Bitcoin perpetual futures could contribute to Singapore’s growing role in institutional crypto adoption.
- Arthur Cheong, founder and CIO of DeFiance Capital, highlighted the significance of this development, noting that it would be the first time a regulated exchange has launched Bitcoin perpetual futures.
Singapore Exchange (SGX) is set to introduce Bitcoin perpetual futures in the second half of 2025, pending approval from the Monetary Authority of Singapore (MAS).
Unlike traditional futures, perpetual contracts do not have an expiry date, allowing continuous trading without the need to roll over contracts. As per reports, the product will be limited to institutional investors and professional traders, excluding retail participants.
Arthur Cheong, founder and CIO of DeFiance Capital, highlighted the significance of this development, noting that it would be the first time a regulated exchange has launched Bitcoin perpetual futures. He added that the product could encourage greater participation in Bitcoin basis trading, particularly for long-dated hedging strategies.
SGX’s move comes as regulatory attitudes toward digital assets continue to evolve. In the United States, policy changes have contributed to increased institutional interest in Bitcoin and other cryptocurrencies. Observers suggest that recent regulatory shifts have strengthened the perception of digital assets as an investable asset class, leading financial firms to explore crypto-related products.
Singapore has been positioning itself as a digital asset hub, with its regulatory framework supporting a structured approach to crypto adoption. MAS has issued a number of licenses to crypto exchanges, including firms such as OKX and Gemini. The planned Bitcoin perpetual futures align with this broader effort to integrate digital assets into the country’s financial system while maintaining regulatory oversight.
Other traditional exchanges in the region are also considering Bitcoin futures. Japan’s Osaka Dojima Exchange has applied for approval to list Bitcoin futures, and EDX Markets, a digital asset platform backed by Citadel Securities, has announced plans to introduce crypto derivatives in Singapore by early 2025. The expansion of institutional crypto offerings indicates a shift in the market, with regulated players looking to provide alternatives to offshore trading platforms.
Perpetual futures have been widely used on crypto exchanges such as Binance and OKX, but these platforms operate in a less regulated environment, presenting risks related to counterparty exposure and security vulnerabilities. SGX aims to offer an alternative within a more structured financial setting. The exchange’s Aa2 credit rating from Moody’s underscores its position as a trusted entity in the financial sector.
The trend toward regulated crypto derivatives is not limited to Asia. The CME Group, one of the largest global derivatives exchanges, has expanded its cryptocurrency futures offerings, including Bitcoin and Ether contracts. Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, noted that such products allow institutional clients to hedge digital asset exposure efficiently.
If approved, SGX’s Bitcoin perpetual futures could contribute to Singapore’s growing role in institutional crypto adoption. The expansion of structured crypto investment products indicates an increasing integration of digital assets into mainstream financial markets.
