Bitcoin News Today: SGX Fills Offshore Perp Gap as Bitcoin Downturn Drives Hedging Needs

The Singapore Exchange (SGX) has launched perpetual futures for Bitcoin and Ethereum, marking a pivotal shift in the integration of cryptocurrencies into traditional finance. The move, announced in March and executed on November 24, positions SGX as one of the first regulated exchanges globally to offer such derivatives, aligning with rising institutional demand for crypto exposure according to the report. Perpetual futures, or "perps," accounted for over $187 billion in daily average trading volumes in 2025, with Asia driving much of the growth. However, these contracts have largely been priced and settled on offshore platforms, a gap SGX aims to fill by bringing them to a regulated, onshore market according to analysis.

Perpetual futures differ from traditional futures in their lack of expiration dates, allowing traders to hold positions indefinitely. This structure is particularly suited to cryptocurrencies, which trade 24/7 and lack physical delivery requirements. Coinbase noted in 2024 that perps constituted 90% of crypto trading volumes, with Bitcoin perps averaging $57.7 billion in daily volume during the first quarter of that year-triple the spot market's average. The mechanism relies on a funding rate system, where periodic payments between longs and shorts keep perpetual prices aligned with spot prices. This feature, described by Coinbase as a "rubber band", ensures that price deviations trigger higher funding costs, incentivizing convergence.

SGX's perps will trade for 22.5 hours across five days, catering to the crypto market's continuous nature. Unlike traditional assets like commodities, which require physical delivery at expiry, perps eliminate the need for rollover costs and fixed-term settlements. This flexibility has made them a dominant tool for hedging and arbitrage in crypto markets. Hassan Ahmed, head of country for Coinbase Singapore, emphasized that perps enable institutions to manage risk more effectively, especially during market volatility. He noted that launching perps during a Bitcoin downturn could highlight their utility as risk-management tools rather than speculative instruments according to analysis.

The launch of SGX's perps aligns with broader industry trends. US-based exchanges like the Chicago Mercantile Exchange (CME) and Cboe Global Markets are also preparing similar products, while Japan's Osaka Dojima Exchange explores Bitcoin futures. Cboe's stock recently outperformed peers, rising 1.11% on a strong trading day, reflecting investor optimism about derivatives expansion. Meanwhile, Coinbase Ventures has outlined a 2026 investment focus on expanding perps to real-world assets (RWA) like commodities and economic data, signaling a potential evolution beyond crypto-native markets.

Regulatory caution remains, however. SGX's perps are limited to institutional, accredited, and expert investors, as the Monetary Authority of Singapore (MAS) warns of crypto's "highly hazardous" nature for retail participants. Ahmed acknowledged that leverage in perps amplifies both gains and losses, necessitating robust risk management. Unlike offshore platforms, SGX's system requires margin calls rather than immediate liquidations, providing investors time to adjust positions. This approach aligns with MAS's emphasis on investor protection while fostering innovation.

The timing of SGX's launch coincides with a Bitcoin price correction, which erased 2025 gains. Ahmed argued that this downturn underscores the need for hedging tools, as institutions seek to mitigate exposure without abandoning crypto. Ethereum's recent gas limit increase to 60 million-a four-year high-also highlights the network's scalability progress, potentially enhancing the appeal of crypto derivatives. For traditional finance, the convergence of crypto and regulated markets could accelerate as Bitcoin's volatility declines. In 2025, Nasdaq 100 companies became more volatile than Bitcoin during the Fed rate cut, suggesting crypto is behaving more like a stable asset class according to data.

Looking ahead, SGX's perps may catalyze broader adoption of crypto derivatives in Asia, where daily volumes are concentrated. Architect Financial Technologies' introduction of perpetual futures for equities in October further demonstrates the derivative's versatility, hinting at a future where perps span asset classes. For SGX, the launch supports its $5 billion Equity Market Development Programme and a dual-listing bridge with Nasdaq, aiming to strengthen Singapore's financial ecosystem. As global exchanges compete to capture the growing derivatives market, the interplay between regulation, innovation, and risk management will shape the trajectory of perpetual futures in 2026.