The Singapore Exchange (SGX) has announced plans to launch Bitcoin perpetual futures in the second half of 2025, marking a significant step in bridging traditional finance and digital assets.
Increased Demand From Traditional Finance
The launch of the perpetual futures is aimed at addressing the growing interest of institutional investors in cryptocurrency trading within a regulated environment. SGX has begun to receive positive responses from both crypto-native companies and traditional market participants, indicating strong demand for compliant trading tools in Asia’s major financial hubs.
> "A bitcoin product by SGX makes it clear for institutional investors that Bitcoin is… not a gambling asset but instead is something investment-grade," said Darius Sit, co-founder of crypto trading firm QCP.
Product Features and Strategic Implications
With Bitcoin perpetual futures, traders can take long or short positions without worrying about contract expiry. This provides increased flexibility in risk management, particularly in volatile markets.
Risks and Strategies for Risk Mitigation
While they are expected to provide benefits, perpetual futures may also pose some risks, including increased volatility and lower liquidity compared to conventional instruments. SGX has been advised to set up stringent monitoring and margin requirements to protect investors.
> "Because crypto derivatives can be subject to extreme price volatility, robust risk controls are essential to protect investors," Etelka Bogardi warned.
The Singapore Exchange's announcement of planned Bitcoin perpetual futures indicates growing institutional confidence in cryptocurrency as an asset class. This move may have significant implications for investment strategies both locally and internationally.
