SGX Plans Bitcoin Perpetual Futures Launch in 2025

Singapore Exchange Ltd. (SGX) is set to launch Bitcoin perpetual futures in the second half of 2025, pending approval from the Monetary Authority of Singapore. This initiative is aimed at institutional investors and professional traders, excluding retail participants. The perpetual futures contracts will not have an expiration date, allowing traders to continuously speculate on Bitcoin's price movements, a feature that differentiates them from traditional futures contracts.

SGX's move to enter the cryptocurrency derivatives market is part of a broader trend among traditional exchanges embracing digital assets. This development aligns with the growing institutional interest in cryptocurrencies, particularly in regions with supportive regulatory environments. By offering a regulated alternative to offshore exchanges, SGX aims to provide a safer and more transparent platform for trading crypto derivatives.

The launch of Bitcoin perpetual futures by SGX is expected to enhance institutional market participation in cryptocurrencies. The exchange's Aa2 rating from Moody’s could help mitigate credit risks associated with unregulated crypto exchanges, making it an attractive option for institutional investors. This move could also position Singapore as a key player in the global crypto derivatives market, further solidifying its status as a financial hub.

SGX's initiative has received positive feedback from both decentralized finance (DeFi) and traditional finance (TradFi) participants, indicating a strong interest in the product. The exchange aims to lead the way in the burgeoning international institutional crypto market, providing a secure and regulated environment for trading crypto derivatives. This move could also help establish Singapore as a leading player in the convergence of traditional finance and digital assets.