Bitcoin News Today: Exchanges Tussle With Crypto Perps to Reclaim Institutional Relevance

The surge in equity perpetual futures (perps) has thrust stock exchanges into a pivotal crossroads, with industry leaders like Singapore Exchange (SGX) and Qatar's bourses grappling to adapt or risk obsolescence. The recent launch of Bitcoin and Ethereum perps on SGX, one of the first such derivatives in Asia, underscores the shifting tides in capital markets, where crypto-native instruments are increasingly outpacing traditional offerings according to analysis. As perpetual contracts account for over $187 billion in daily trading volumes globally, exchanges are racing to integrate these products to retain institutional relevance according to reports.

The SGX initiative, which began trading on Nov. 24, aligns with a broader trend of blending traditional finance with crypto ecosystems. Perpetual futures-contracts without expiration dates that use funding rates to tether prices to spot markets-have dominated crypto trading since late 2020, with Bitcoin perps alone averaging $57.7 billion in daily volumes in early 2024. For SGX, the move is part of a $5 billion Equity Market Development Programme aimed at revitalizing Singapore's bourses, while also signaling to institutional investors that regulated access to crypto derivatives is now viable according to market analysis. The timing, however, is fraught: Bitcoin's recent correction wiped out 2025 gains, trading below $90,000 after peaking at $126,251. Yet Hassan Ahmed, head of Coinbase Singapore, argues that launching perps during a downturn forces institutions to view them as risk-management tools rather than speculative gambles.

Traditional exchanges face similar pressures to evolve. In Qatar, a $552 million secondary offering in Ooredoo QPSC marked the first significant equity market activity in years, with Citigroup analysts noting it could catalyze further listings as the Gulf state seeks to broaden market participation according to market analysis. Regulatory tweaks, such as allowing short-selling and incentivizing relocations, aim to boost liquidity, though the path ahead remains contingent on sustained offerings and local champions according to analysts. By contrast, the UAE has already raised nearly $5 billion through secondary share sales this year, highlighting the urgency for competitors to innovate according to financial reports.

Yet adaptation isn't without peril. Private equity firms like Gaw Capital Partners, which recently secured a last-minute loan extension for a Shanghai property-backed asset, exemplify the fragility of traditional strategies amid China's property crisis. Lenders reduced the loan to $108 million from $110 million and granted an 18-month reprieve, reflecting growing wariness of real-estate-linked exposure. Meanwhile, high-profile missteps such as the $1.4 billion loss on United Site Services-a portable-toilet company managed by Platinum Equity-reveal the risks of overreliance on leveraged buyouts. These cases underscore a broader theme: as capital markets evolve, rigid models face extinction.

Looking ahead, the rise of equity perps may extend beyond crypto. Architect Financial Technologies recently introduced perpetual futures for traditional assets like foreign currencies and stock indices, signaling a potential paradigm shift. Hyperliquid, a crypto exchange, is also expanding its HYPE treasury and HIP-3 upgrades to incentivize new perpetual markets, including tokenized equities and pre-IPO stocks according to market analysis. For stock exchanges, the message is clear: innovation is no longer optional. As Ahmed noted, "The key benefit of launching during a downturn is that institutions get to see the value of perps as genuine risk-management tools rather than speculative instruments." In a world where Bitcoin's volatility rivals Nasdaq 100 stocks and regulatory landscapes shift rapidly, adaptability may be the only sustainable competitive advantage.