Singapore Exchange (SGX) to Launch Bitcoin Perpetual Futures Contracts Targeting Institutional Clients

Singapore Exchange Ltd. (SGX) intends to launch Bitcoin perpetual futures contracts for institutional clients and professional investors during the second half of 2025.

Singapore Exchange Ltd. (SGX) is set to launch bitcoin perpetual futures contracts for institutional clients and professional investors in the second half of 2025, pending approval from the Monetary Authority of Singapore (MAS).

What Happened: SGX will be offering bitcoin perpetual futures contracts as a regulated trading solution for professional investors who want exposure to the digital asset markets. With this launch, SGX will be adding crypto derivatives to its offerings and capitalize on the increasing interest from traditional institutions in investing in digital assets.

These futures contracts will be an alternative to standard futures contracts as they will not have an expiration date. Instead, traders can continue speculating on the bitcoin price movement or hedge their bitcoin price risk with these futures contracts for as long as they choose.

This product will be available to institutional investors who are seeking exposure to cryptocurrencies without needing to invest in the underlying asset. However, retail investors will not be able to participate in this product.

The Focus on Institutions and Regulatory Nod:The new bitcoin perpetual futures contracts will be offered to institutional investors only, and they will not be available for retail investors in the initial stages. This launch marks a significant step forward in broadening the range of investment products offered by SGX to meet the evolving needs of the institutional investment community.

Institutions are increasingly interested in including digital assets in their investment portfolios as the crypto market matures and becomes more regulated.

The product still requires regulatory approval from the MAS before it can be launched. SGX is already compliant with the established conditions for holding foreign currency futures and will ensure the product performs in a stable manner.

The exchange is also subject to ongoing regulatory surveillance by the MAS, which is a crucial aspect to maintain a safe and protected marketplace where financial institutions can trade openly and fairly.

Investors will also have the benefit of investing in a company rated Aa2 by Moody’s, which issued a new rating on the exchange in June.

Why It's Important: SGX is joining other major exchanges in launching crypto derivatives products for institutional market participants. Earlier this week, EDX Markets, an exchange backed by seven major investment firms, announced plans to launch bitcoin, ether and lido staked ether futures contracts.

Also, Japan’s Osaka Dojima Exchange recently announced plans to introduce bitcoin futures and ether futures later this year.

As traditional exchanges expand their offerings to include crypto derivatives, they are catering to the increasing demand from institutional investors for investing in digital assets.

These institutions are actively diversifying their investment strategies and seeking new avenues for generating returns in the evolving financial landscape.

Singapore is fast becoming a hub for crypto activity in Asia, thanks to its supportive regulatory regime and open investment climate. Its sophisticated financial ecosystem and commitment to technological advancement make it an attractive destination for global crypto operators.

The launch of bitcoin futures contracts on SGX will further cement Singapore's position as a leading institutional bitcoin investment hub in Asia.

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