The Singapore Exchange plans to launch bitcoin perpetual futures later this year to stay competitive. The launch is expected to benefit SGX by attracting new investors and utilizing its derivatives expertise.
Singapore Exchange to Introduce Bitcoin Perpetual Futures Derivative Product
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SGX Seeks to Tap Rising Institutional Demand
The Singapore Exchange (SGX) reportedly plans to launch bitcoin ( BTC) perpetual futures later this year. Launching the crypto derivative product is aimed at maintaining SGX’s competitive edge as cryptocurrencies gain traction as a recognised investment asset class. The move aligns with a global trend of traditional exchanges embracing crypto derivatives amid rising institutional demand.
Perpetual futures, unlike traditional futures, do not have an expiration date, allowing investors to trade on BTC’s price direction indefinitely. SGX reports positive initial feedback from both crypto-native and traditional finance players.
Meanwhile, some industry experts view the move as a significant step in validating the top cryptocurrency’s legitimacy.
“A bitcoin product by SGX is clear guidance for institutional investors that Bitcoin is… not a gambling asset but instead is something investment-grade,” stated Darius Sit, founder of crypto trading firm QCP. Similarly, Chainalysis’ Ong Chengyi sees it as “firmly entrenching bitcoin as an investible asset” suitable for professional portfolios. Robert Krugman of Broadridge said it “validates the growing acceptance of cryptocurrencies… within regulated markets.”
The launch is expected to benefit SGX by attracting new investors and leveraging its established strength in derivatives, according to FalconX’s Matt Long. It also offers investors, both crypto-savvy and institutional, a regulated and familiar platform for trading and hedging, as highlighted by Auros’ Shi Le and Norton Rose Fulbright’s Etelka Bogardi.
However, some experts like Bogardi also caution about potential risks such as volatility and lower liquidity. She emphasised the need for SGX to implement robust risk management measures similar to those used for traditional futures.
The introduction of bitcoin perpetual futures by SGX signals a growing convergence between traditional finance and the digital asset space, potentially paving the way for broader adoption and more sophisticated crypto investment products in regulated environments.
