The Singapore Exchange (SGX) is set to launch Bitcoin perpetual futures in the second half of 2025, a move aimed at expanding traditional financial market participation in crypto derivatives.
Market Preparedness for Crypto Derivatives
With the introduction of Bitcoin perpetual futures, the Singapore Exchange plans to offer this product exclusively to large institutional clients and professional investors. Retail investors will not be included in this offering. The final decision is pending approval from the Monetary Authority of Singapore (MAS). This initiative aligns with the growing interest from institutional investors in Bitcoin derivatives, driven by the increasing global confidence in cryptocurrencies. In Japan, Osaka Dojima Exchange is also seeking permission to launch Bitcoin futures, illustrating the interest of leading exchanges in crypto assets.
Evolution of Perpetual Futures
Perpetual futures were first introduced by BitMEX in 2016. These contracts allow traders to speculate on Bitcoin price changes without owning the asset. Unlike standard futures, they do not have an expiration date, making them a significant tool in the world of crypto trading. Similar practices exist in other markets, like the Japan Exchange Group's rolling-spot gold futures that track gold prices without the need for physical metal.
A New Era for Institutional Investors
The Singapore Exchange positions itself as a trusted link between the heavily regulated financial world and the volatile crypto market. According to SGX representatives, the new product will 'significantly expand institutional market access,' offering a safer alternative to risky offshore crypto platforms. The entry of major exchanges into the crypto markets provides institutional investors with safer avenues into Bitcoin derivatives, underscoring the integration of cryptocurrencies into traditional financial systems.
The launch of Bitcoin perpetual futures by the Singapore Exchange marks an expansion of opportunities for institutional investors and serves as another indicator of how cryptocurrencies are solidifying their place in global financial systems.
