Singapore Exchange Ltd. (SGX) plans to launch Bitcoin perpetual futures in the second half of 2025, aiming to provide a regulated alternative for institutional investors and professional traders. The proposed contracts, which require approval from the Monetary Authority of Singapore, represent a significant step in integrating digital asset derivatives into mainstream financial markets.
SGX’s initiative follows a broader trend of established exchanges venturing into cryptocurrency derivatives. Japan’s Osaka Dojima Exchange Inc., one of the oldest financial exchanges in the world, is also seeking regulatory approval to list Bitcoin futures. The push from traditional financial institutions into Bitcoin derivatives coincides with rising institutional interest in digital assets, further fueled by pro-crypto policies from the U.S. government.
A spokesperson for SGX stated that the offering is designed to “significantly expand institutional market access.” The exchange’s Aa2 credit rating from Moody’s is positioned as a key advantage over offshore cryptocurrency venues, which often carry higher counterparty risk. Perpetual futures, unlike conventional futures contracts, do not expire and allow traders to speculate on price movements indefinitely.
Regulatory Considerations and Institutional Demand
SGX’s Bitcoin perpetual futures are still pending approval from Singapore’s financial regulators. The city-state has positioned itself as a global financial hub with a measured approach to cryptocurrency regulation. The approval process will determine whether SGX can establish itself as a key institutional gateway to Bitcoin trading.
The new products will be exclusively available to institutional clients and professional investors, with retail traders explicitly barred. This approach contrasts with offshore cryptocurrency exchanges such as Binance Holdings Ltd. and OKX, which cater to a broader audience. SGX’s move signals an effort to offer a secure, compliant trading venue while reducing risks associated with unregulated crypto markets.
Market Structure and Competitive Landscape
Perpetual futures have been a core component of offshore cryptocurrency trading, pioneered in 2016 by the exchange BitMEX. The product operates similarly to swap contracts, with periodic payments between buyers and sellers based on the contract’s value. The structure enables continuous price speculation without requiring ownership of the underlying asset.
The growing demand for regulated crypto derivatives has also attracted competitors beyond SGX. In January 2024, EDX Markets LLC, backed by Citadel Securities, announced plans to introduce perpetual futures in Singapore. In the U.S., Chicago-based Bitnomial Inc. disclosed in October 2024 its intention to launch Bitcoin perpetual futures using a proprietary platform called Botanical.
One of SGX’s primary value propositions is mitigating counterparty risk, a persistent issue in the crypto sector. Unregulated platforms have historically been vulnerable to security breaches and liquidity crises. The collapse of FTX, co-founded by Sam Bankman-Fried, underscored the risks associated with unregulated perpetual futures trading. By offering a regulated alternative, SGX aims to attract institutional investors seeking stability in digital asset markets.
