April 23, 2025
By Our Correspondent
The Singapore Exchange (SGX) has revealed its intention to introduce Bitcoin perpetual futures in the latter half of 2025. This latest offering from SGX is designed exclusively for professional entities and institutional investors.
As reported by Business Times, SGX serves as Singapore’s only official platform for securities and derivatives trading, operating under comprehensive government regulations. This initiative marks a significant milestone for SGX, showcasing its dedication to remaining competitive amid the evolving global acceptance of digital assets.
An increasing number of investors now view cryptocurrencies, particularly Bitcoin, as viable options for long-term investment. Consequently, traditional exchanges are beginning to venture into the cryptocurrency market.
Perpetual futures are distinct from conventional futures contracts available in the market. Unlike standard futures, perpetual futures do not have an expiration date, allowing traders to hold their positions indefinitely if they choose. These contracts enable investors to maintain their Bitcoin holdings over an unlimited timeframe to maximize price speculation.
Furthermore, this initiative aligns with a broader global trend, as traditional financial institutions are increasingly interested in the crypto derivatives market. The rising institutional demand for cryptocurrency products is a key driver of this market growth.
Notably, U.S. President Donald Trump, along with other political leaders and major financial institutions, has shown increasing support for cryptocurrencies, contributing to growing market confidence. SGX’s entry into this sector is expected to enhance investor trust.
According to statements from company representatives, the new product has received favorable feedback from participants in both decentralized finance (DeFi) and traditional finance (TradFi) markets. However, the product must secure the necessary regulatory approvals before its launch.
The Monetary Authority of Singapore mandates a thorough review and approval of SGX’s forthcoming product prior to its official introduction. The Bitcoin perpetual futures must receive formal authorization from the Monetary Authority of Singapore before they can be made available in the market.
Initial signs indicate that there is significant interest from market participants regarding this new offering. Retail investors have been excluded from trading SGX Bitcoin futures. SGX has confirmed that only experienced traders and institutional investors will be eligible to engage with these futures contracts.
This decision reflects the exchange’s commitment to managing risk in a careful and responsible manner. Moreover, SGX aims to establish a trading platform that facilitates safe and regulated market activities for investors. Currently, the exchange holds a favorable Aa2 credit rating from Moody’s, which bolsters its credibility. This reputation may attract global interest in the crypto services offered on the platform.
As of now, the timeline for the launch remains unspecified. The exchange has indicated plans to commence operations in mid-2025, allowing sufficient time for SGX and regulatory bodies to complete necessary procedures and ensure a smooth rollout.
As the cryptocurrency sector continues to grow, SGX is also evolving. Traditional financial institutions are beginning to explore the integration of digital assets into their operations, coinciding with SGX’s decision to introduce Bitcoin perpetual futures.
