Singapore Exchange to debut regulated Bitcoin perpetual futures in 2025

Singapore Exchange Ltd. (SGX) is considering launching Bitcoin (BTC) perpetual futures as traditional financial institutions deepen their involvement in the crypto industry, according to a Bloomberg report.

SGX plans to introduce the contracts in the second half of 2025, pending approval from the Monetary Authority of Singapore (MAS). These futures will be limited to institutional clients and professional investors, excluding retail traders.

SGX aims to bridge the gap between regulated financial markets and the crypto sector. The product is expected to provide institutions with exposure to digital assets while mitigating risks associated with unregulated platforms.

Unlike standard futures contracts, perpetual futures do not have an expiration date. This allows traders to speculate continuously on BTC’s price movements without taking direct ownership of the asset.

Arthur Cheong, founder and CIO of DeFiance Capital, noted that this marks the first regulated traditional exchange Bitcoin perpetual futures launch. He believes the move will enhance BTC basis trade participation, particularly for long-dated basis hedging.

SGX is one of the larger traditional exchanges, with a market capitalization of more than $633.803 billion in December 2024.

Institutional interest

SGX’s interest in Bitcoin’s future reflects a growing trend of traditional financial institutions entering crypto.

This expansion has gained momentum recently, particularly following regulatory developments in the United States.

Market observers suggest that evolving US policies, particularly under the Donald Trump administration, have increased institutional interest in Bitcoin.

The perceived legitimacy of digital assets has encouraged more traditional firms to explore crypto-related products, further integrating the sector into mainstream finance.

Crypto hub

Meanwhile, SGX’s latest initiative aligns with Singapore’s broader strategy to solidify its position as a digital assets hub in Asia.

Over the years, Singapore’s regulatory framework has expanded to support responsible crypto innovation, reinforcing its reputation as a stable and business-friendly environment.

Industry experts believe this progressive approach makes the country an attractive destination for long-term digital asset investments.

As a result, the country has issued numerous crypto licenses to major industry players, including exchanges like OKX and Gemini.