Singapore Exchange will launch perpetual futures on Bitcoin by 2025

The Singapore Exchange (SGX) is planning the introduction of perpetual futures contracts on Bitcoin. The announcement comes at a time of increasing demand for digital assets, fueled by a crypto-friendly policy adopted by the US government.  

Singapore Exchange: new frontier for Bitcoin derivatives with the new perpetual futures

SGX, the main stock exchange group of Singapore, plans to launch these financial instruments in the second half of 2025. The initiative is aimed exclusively at institutional and professional investors, excluding the retail public from the possibility of trading with these contracts.

A spokesperson for SGX stated that Bitcoin futures represent an opportunity to create a bridge between regulated financial markets and the more volatile sector of trading in criptovalute. The company believes that this initiative can significantly expand access to the institutional market, increasing liquidity and security of operations on Bitcoin.

However, before its implementation, the new financial instrument will need to obtain the green light from the Monetary Authority of Singapore, the financial supervisory authority of the city-state.  

The interest of traditional exchanges like Singapore Exchange in Bitcoin and other digital assets

The initiative of SGX is part of a broader trend of traditional exchanges opening up to cryptocurrency-related products. On March 4, 2025, Bloomberg News revealed that the Osaka Dojima Exchange, a historic site of Japanese trading, also intends to apply for authorization to list Bitcoin futures.  

The entry of traditional operators into the cryptocurrency derivatives market is happening in a context of increasing regulation of the sector. The main exchanges aim to offer a more reliable and secure alternative to offshore markets, often characterized by less stringent regulation.  

What are perpetual futures on Bitcoin?  

Perpetual futures are derivative instruments that allow investors to speculate on the price changes of an asset without directly owning it. Unlike traditional futures, they do not have an expiration date, allowing positions to remain open indefinitely unless closed by the trader.  

This approach is already widespread among offshore cryptocurrency platforms such as Binance Holdings and OKX. Moreover, such contracts were a key element in the financial empire of Sam Bankman-Fried, co-founder of FTX, before the collapse of the exchange.

A safer alternative for institutional investors  

In recent years, the cryptocurrency market has seen numerous cases of exchange failures and thefts of digital assets. This aspect represents a significant risk for institutional investors, who are particularly attentive to the security and reliability of the counterparties they operate with.  

To differentiate itself from unregulated crypto platforms, SGX emphasizes that its Aa2 rating assigned by Moody’s will offer a higher level of trust for those who wish to trade Bitcoin futures in a regulated environment.  

Singapore among the main global hubs for cryptocurrencies  

The entry of SGX into Bitcoin futures is just one of the numerous pro-crypto initiatives recently announced in Singapore. Already in January 2024, the US company EDX Markets, backed by Citadel Securities, had unveiled plans to launch similar products in the Asian country.  

The expansion of trading in crypto-asset derivatives on regulated markets could lead to greater integration between the traditional sector and the world of cryptocurrencies. This development could create new opportunities for institutional investors, while simultaneously reducing the risks associated with offshore platforms.  

The perpetual futures and the precedent of precious metals  

The idea of a perpetual future is not new in traditional markets. Some similar instruments already exist in the commodities sector. The Japan Exchange Group, for example, offers “rolling-spot” contracts on gold, which allow investors to gain exposure to the metal’s price without worrying about physical delivery.

The same principle is now applied to contracts on Bitcoin, allowing investors to participate in the price movements of the digital asset without the need to own it directly.  

Conclusion  

The announcement by SGX on perpetual futures on Bitcoin marks an important step towards the integration between traditional financial markets and crypto-assets. The growing demand for regulated instruments, combined with the support of governments with favorable cryptocurrency policies, could accelerate this transition.  

If approved by regulatory authorities, the launch of the new contracts could increase accessibility to digital assets for institutional investors, strengthening Singapore as one of the main financial hubs for cryptocurrencies in Asia.