Singapore Exchange to Launch Bitcoin Perpetual Futures in 2025

The Singapore Exchange (SGX) has declared its plan to introduce Bitcoin perpetual futures, marking a pivotal shift in the traditional exchange landscape as it embraces crypto derivatives. This new offering is scheduled to debut in the latter half of 2025, targeting institutional and professional investors while excluding retail participants. This strategic move underscores SGX's dedication to maintaining its competitive edge in a financial environment where digital assets are increasingly recognized as viable investment options.

Perpetual futures enable investors to speculate on the direction of cryptocurrency prices without the limitations of an expiration date, unlike traditional futures contracts. This innovation is expected to attract a new segment of investors who may not have previously engaged with Bitcoin, thereby expanding the market's reach and depth. Industry experts view this development as a validation of Bitcoin's status as an investment-grade asset, distinct from other cryptocurrencies often perceived as speculative.

The launch of Bitcoin perpetual futures on SGX is anticipated to bolster the ongoing institutionalization of digital assets. Darius Sit, founder and chief investment officer of a crypto-asset trading firm, noted that a Bitcoin product by SGX provides clear guidance to institutional investors, differentiating Bitcoin from other cryptocurrencies and positioning it as a legitimate investment asset. Similarly, Ong Chengyi, Asia-Pacific head of policy at a blockchain data platform, sees SGX's move as firmly entrenching Bitcoin within professional and institutional portfolios.

Robert Krugman, chief digital officer at a fintech firm, regards SGX's entry into the market as validating the growing acceptance of cryptocurrencies as a legitimate asset class within regulated markets. This move is expected to put pressure on other traditional exchanges to offer similar crypto derivative products to remain competitive. With SGX's strong position in derivatives and its status as a tier-one global exchange, it is well-placed to support institutions as they enter the cryptocurrency market.

The product is expected to benefit both crypto-native and institutional investors. While crypto-savvy traders are already familiar with perpetual futures, SGX's entry provides an additional, regulated venue that traditional finance participants may find more accessible. This move is reminiscent of the rollout of crypto exchange-traded funds, which significantly expanded exposure within institutional circles.

Industry experts also see SGX's move as part of a broader trend where digital assets are increasingly being integrated into mainstream financial infrastructure. As more exchanges adopt crypto-native instruments within regulated frameworks, confidence in the legitimacy and investability of these products will continue to grow. This trend reflects the growing maturity of the crypto industry and rising institutional interest across the region.

For Singapore, the introduction of Bitcoin perpetual futures strengthens its position as a trusted hub for digital assets. The move not only reinforces Singapore's reputation but also signals rising demand for institutional-grade crypto exposure. As traditional financial institutions expand their digital asset offerings, SGX's Bitcoin perpetual futures provide a regulated, transparent way for institutional investors to participate in the market with reduced counterparty risks.

Looking ahead, companies such as Nomura, Standard Chartered Bank, and Fidelity have already entered the cryptocurrency custody business. As the markets grow, traditional exchanges will continue to consider their approach to cryptocurrency and crypto derivatives. A trading venue that aligns with liquidity cycles and regulatory considerations enhances accessibility for institutions seeking diversified exposure, contributing to a more balanced and resilient global derivatives market.

However, managing potential risks of disorderly trading will be a key focus for SGX. Volatility and lower liquidity are some of the potential additional risks that arise in connection with crypto futures products. Exchanges can employ various investor and market protection measures, many of which are already familiar in traditional markets. These measures include margin requirements, limits on leverage, clearing and settlement controls, price and position limits, and standardized contracts.