Singapore Exchange (SGX) is set to introduce Bitcoin perpetual futures in the second half of 2025, marking a significant step as traditional exchanges deepen their involvement in cryptocurrency derivatives. The move comes amid increasing demand for digital asset exposure, spurred by US President Donald Trump’s pro-crypto stance.
A spokesperson for SGX confirmed the development in an emailed statement, emphasizing that the contracts will be exclusively available to institutional clients and professional investors. Retail investors will be barred from trading the instruments.
The initiative highlights a broader trend of established exchange operators embracing Bitcoin derivatives. Japan’s Osaka Dojima Exchange, which has roots dating back to the 18th century, is also seeking regulatory approval to list Bitcoin futures, according to Bloomberg News.
SGX aims to serve as a bridge between regulated financial markets and the volatile cryptocurrency trading landscape. The exchange believes its offering will “significantly expand institutional market access,” the spokesperson stated. However, the planned products are still awaiting approval from the Monetary Authority of Singapore.
Institutional-Grade Crypto Trading
Perpetual futures differ from conventional futures contracts as they have no expiry date, allowing traders to speculate on asset price movements without holding the underlying asset. While these contracts are popular on offshore cryptocurrency exchanges like Binance and OKX, their use has been controversial. They played a major role in the collapse of FTX, the exchange founded by Sam Bankman-Fried.
SGX is not alone in seeking to introduce perpetual futures in Singapore. In early 2024, New Jersey-based EDX Markets, backed by Citadel Securities, announced plans to offer similar instruments in the city-state.
Given the history of credit risks associated with cryptocurrency exchanges, SGX is positioning itself as a more secure alternative. The exchange boasts an “Aa2” rating from Moody’s, providing institutional traders with a trusted platform for crypto derivatives.
A Model from Commodity Markets
The perpetual futures concept is not new; it has been widely used in commodity markets. Japan Exchange Group, for instance, offers rolling-spot gold futures, allowing investors to gain exposure to gold prices without dealing with physical delivery. The contracts function similarly to certain swap instruments—if a position is profitable, one party pays the other, and the dynamic reverses when the contract falls out of the money.
The first perpetual futures for cryptocurrencies were introduced by BITMEX in 2016, according to Bloomberg News. Meanwhile, conventional Bitcoin and Ether futures, which settle at predetermined dates, are already widely traded on US exchanges.
In October 2024, Chicago-based exchange Bitnomial announced its intention to launch perpetual futures in the US using a new technology platform known as Botanical. With SGX now joining the fray, the cryptocurrency derivatives market continues to evolve, offering institutional investors more regulated avenues for digital asset trading.
