The Singapore Exchange (SGX) has announced plans to launch Bitcoin perpetual futures later this year. The move is expected to strengthen SGX’s position in the growing market for crypto derivatives.
It also shows how far Bitcoin has come in gaining acceptance as a serious investment option, especially among institutional investors, the Business Times reported.
SGX to Launch Bitcoin Perpetual Futures
Perpetual futures are different from regular futures because they don’t have an end date. This means traders can hold their positions for as long as they want. These products were first popularised by BitMEX in 2016 and work like swap contracts.
Traders bet on the price of Bitcoin without owning it directly. When the trade is profitable, payments flow between the parties involved. This flexibility appeals to both professional and retail traders.
SGX received encouraging early feedback from both decentralised and traditional finance players. Experts believe this launch is a strong signal that Bitcoin is no longer seen as just a risky gamble, but a potential part of mainstream portfolios.
Industry voices back the move
Darius Sit from QCP believes the product shows that Bitcoin is now seen as investment-grade. Others, like Ong Chengyi from Chainalysis, agree that SGX is helping cement Bitcoin’s place in the financial world.
According to Robert Krugman of Broadridge, the exchange’s decision is part of a growing shift by global markets to accept cryptocurrencies.
Matt Long from FalconX believes SGX has the right tools and reputation to serve big institutions. As more firms want to hedge their risks or expand their trading options, having Bitcoin futures on a trusted exchange could open new doors.
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Shi Le from Auros added that while crypto-native traders already know these products well, SGX’s regulated platform will make it easier for traditional finance to join in.
Setting a Trend in Traditional Finance
This move isn’t happening in isolation, and other major firms like Nomura and Fidelity have also stepped into crypto services. SGX’s entry adds another layer of trust for investors who prefer familiar names and regulated environments.
Mohd Kifa from Flipster pointed out that this is part of a wider shift. Digital assets are no longer stuck on crypto-only platforms. They’re making their way into the mainstream, slowly but surely becoming part of everyday financial infrastructure.
Regulatory focus remains key
Despite the excitement, SGX still has to make sure everything runs smoothly. As with any crypto product, risks like volatility and low liquidity are concerns.
Regina Bogardi stressed the importance of strict compliance with rules from the Monetary Authority of Singapore and SGX’s own guidelines. Getting the balance right will be essential to ensure investor safety and confidence.
SGX’s decision marks an important moment for cryptocurrency in Asia. It reflects how fast the digital asset space is evolving and how traditional institutions are beginning to catch up.
If all goes well, the Bitcoin perpetual futures product could be the first of many steps that bring crypto even closer to the heart of global finance.
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