Bitcoin News Today: SGX Takes On 'Bucket Shops' with Regulated Bitcoin, Ether Perpetual Futures

Singapore Exchange's (SGX) derivatives arm is set to disrupt the cryptocurrency derivatives market with the launch of Bitcoin and Ether perpetual futures, a move aimed at bridging the gap between institutional finance and the fast-moving crypto ecosystem. The contracts, scheduled to debut on November 24, will be benchmarked to the iEdge CoinDesk Crypto Indices, aligning them with widely recognized institutional-grade price discovery tools according to reports. This initiative underscores growing demand from institutional investors for regulated access to crypto derivatives, a market segment that accounts for over two-thirds of all crypto trading activity as data shows.

Perpetual futures, which allow traders to hold positions indefinitely without expiry, have long been a staple of unregulated offshore platforms. These instruments, which generate more than $187 billion in daily trading volumes globally, typically rely on funding rate mechanisms to tether contract prices to the underlying asset's market value. SGX's offering introduces traditional margining and clearing systems, a departure from the automated liquidation mechanisms seen on many crypto-native exchanges. Michael Syn, president of SGX Group, emphasized that the move "applies the same institutional discipline that underpins global markets to crypto's most traded payoff," addressing concerns about transparency and risk management.

The new contracts will be available exclusively to accredited and institutional investors, a restriction SGX attributes to the volatile and speculative nature of crypto assets. Unlike traditional futures, SGX's perpetuals will trade 22.5 hours daily, five days a week, offering a hybrid model that balances flexibility with regulatory oversight as noted by analysts. Andy Baehr, head of product and research at CoinDesk Indices, praised the initiative, noting that SGX's approach brings "institutional-grade infrastructure to a product that has historically been traded in unregulated environments".

The launch also positions SGX as a counterweight to what it describes as "bucket shops"-unregulated exchanges that lack transparency in liquidation processes and market-making practices. By leveraging clearing members akin to Futures Commission Merchants in the U.S., SGX aims to mitigate risks associated with counterparty defaults and ensure robust collateral management. This structure, Syn explained, provides "position certainty" for traders, a critical factor for institutions wary of the operational risks inherent in crypto markets.

The timing of the launch coincides with a broader shift in investor sentiment toward regulated crypto products. While Bitcoin and Ether have experienced significant price swings in 2025, the Trump administration's pro-crypto policies have fueled optimism about regulatory clarity. SGX's move aligns with Singapore's reputation as a fintech hub, offering a regulated alternative to offshore platforms while catering to the surging demand for institutional-grade crypto exposure.