Singapore Exchange to Launch Bitcoin Perpetual Futures, Boosting Institutional Access

The Singapore Exchange (SGX) has announced its plan to launch Bitcoin perpetual futures later this year, a move that is expected to enhance its competitiveness in the evolving landscape of digital assets. This initiative aligns with the broader trend of traditional exchanges venturing into the crypto derivatives market, driven by the increasing demand for digital assets. Unlike traditional futures, perpetual futures allow investors to trade the direction of cryptocurrency prices without an expiration date, providing a more flexible trading option.

SGX aims to target institutional and professional investors with this new product, excluding retail investors. The exchange anticipates that its innovative offering on a trusted, regulated platform will significantly expand institutional market access in a space where confidence and credibility are paramount. Initial feedback on the product has been positive from both decentralised finance and traditional finance participants, indicating a growing acceptance of Bitcoin as an investment-grade asset.

Industry experts have welcomed SGX’s move, viewing it as a validation of the growing acceptance of cryptocurrencies as a legitimate asset class. Darius Sit, founder and chief investment officer of crypto-asset trading firm QCP, noted that a Bitcoin product by sgx is clear guidance for institutional investors that Bitcoin is different from the rest of the cryptocurrency universe and is an investment-grade asset. Similarly, Ong Chengyi, Asia-Pacific head of policy at blockchain data platform Chainalysis, views SGX’s move as firmly entrenching Bitcoin as an investible asset that can form part of professional and institutional portfolios.

Robert Krugman, chief digital officer at fintech firm Broadridge, also 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 consider offering similar crypto derivative products to remain competitive and on global regulators to develop frameworks that enable these products to be launched in their markets.

With SGX’s status as a tier-one global exchange and its strength in derivatives, Matt Long, general manager, APAC, at FalconX, said that SGX should be well-placed to support institutions as they enter the cryptocurrency markets. The product is expected to benefit both crypto-native and institutional investors, providing an additional, regulated venue that traditional finance participants may find more familiar and accessible. This move is reminiscent of the rollout of crypto exchange-traded funds over the past 18 months, which significantly expanded exposure within institutional circles.

Etelka Bogardi, partner and Asia head of fintech and financial services regulatory at law firm Norton Rose Fulbright, sees the potential introduction of Bitcoin futures on SGX as especially beneficial for market participants who require hedging services. This could be the first step towards making these derivative products available to a broader audience in the future beyond institutional investors. Industry experts also see SGX’s move as part of a broader trend where digital assets, once confined to crypto-native platforms, are increasingly being integrated into mainstream financial infrastructure.

As more exchanges adopt crypto-native instruments such as perpetual futures within regulated frameworks, confidence in the legitimacy and investability of these products will continue to grow. Saad Ahmed, the Asia-Pacific head of crypto exchange Gemini, noted that SGX’s entry into crypto derivatives reflects the growing maturity of the crypto industry in the region. For Singapore, the introduction of Bitcoin perpetual futures strengthens its position as a trusted hub for digital assets, reinforcing its reputation and signaling rising demand for institutional-grade crypto exposure.

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 think about their approach to cryptocurrency and crypto derivatives in particular. A key focus for SGX will be managing potential risks of disorderly trading. 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 standardised contracts.

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