| Key Points: – Singapore Exchange plans to introduce Bitcoin perpetual futures for institutional investors in H2 2025, pending regulatory approval. – The move aligns with increasing institutional adoption of crypto derivatives, with similar efforts seen in Japan and the U.S. |
Singapore Exchange (SGX) plans to introduce Bitcoin perpetual futures in the second half of 2025, marking a significant move by traditional financial institutions into cryptocurrency derivatives.
The exchange aims to cater exclusively to institutional clients and professional investors, excluding retail traders from participation.
Singapore Exchange Set to Enter Bitcoin Derivatives Market
The launch remains subject to regulatory approval from the Monetary Authority of Singapore (MAS). SGX’s entry into the market underscores a growing trend among established exchanges venturing into Bitcoin derivatives, driven in part by increasing demand for digital assets.
The introduction of Bitcoin perpetual futures by Singapore Exchange is expected to enhance institutional market participation while addressing credit risks associated with unregulated crypto exchanges. The Osaka Dojima Exchange in Japan, which dates back to the 18th century, is also pursuing approval to list Bitcoin futures.
Bitcoin perpetual futures, first introduced by BitMEX in 2016, differ from conventional futures as they do not have an expiration date. It allows traders to speculate on price movements without holding the underlying asset. These contracts are already widely available on cryptocurrency exchanges such as Binance and Deribit but have been associated with risks, including their role in the collapse of FTX.
Singapore Strengthens Position as a Global Fintech Hub
Singapore Exchange believes its Aa2 credit rating from Moody’s will help establish credibility and attract institutional participants. The exchange’s foray into crypto derivatives aligns with Singapore’s broader acceptance of digital assets.
Recently, Fly Wing Technologies, a subsidiary of Matrixport, secured a Major Payment Institution (MPI) license from MAS, enabling it to provide regulated digital payment token services. Similarly, Hex Trust Group, a digital asset custodian, received an MPI license on March 6.
EDX Markets, a U.S.-based crypto asset firm backed by Citadel Securities, also announced plans in January 2025 to offer perpetual futures in Singapore. Meanwhile, in the U.S., Chicago-based Bitnomial is working on launching perpetual futures using its new technology platform, Botanical.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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