- Singapore Exchange’s (SGX) derivatives unit will launch Bitcoin and ether perpetual futures on November 24.
- Perpetual futures have no expiry date and use a funding rate to keep prices aligned with the underlying asset.
- SGX’s contracts reference the iEdge CoinDesk Crypto Indices, known for institutional-grade price benchmarks.
- Industry participants like DBS Bank and OKX view this as a strategic advancement for institutional access to crypto.
Singapore Exchange’s derivatives division announced it will introduce bitcoin (BTC) and ether (ETH) perpetual futures starting November 24. These contracts provide institutions the opportunity to trade popular crypto derivatives with the structure and trust typical of global markets.
Perpetual futures differ from traditional futures by having no expiry date. Traders can hold positions indefinitely without rollover concerns. These instruments use a funding rate mechanism involving periodic payments between buyers and sellers to keep contract prices near the underlying asset’s market value. Globally, perpetual futures generate over $187 billion in daily trading volume, mostly on unregulated offshore platforms.
The new SGX contracts reference the iEdge CoinDesk Cryptocurrency Indices. These indices publish real-time benchmarks and daily reference rates for bitcoin and ether, supporting transparent price discovery for institutional traders. Updated every second throughout weekdays and weekends, they capture cryptocurrency performance across multiple liquid exchanges.
SGX Group President Michael Syn stated that institutional investors have increasingly added digital assets to their portfolios, making this launch a logical step to combine institutional standards with popular crypto derivatives.
Market leaders expressed support for the launch. Patrick Yeo, head of digital assets at DBS Bank, highlighted the benefit for institutional traders to gain crypto exposure without holding the underlying assets, allowing more precise portfolio management than spot trading. Gracie Lin, CEO of OKX Singapore, emphasized the demand for regional benchmarks that integrate crypto and traditional assets, calling it a natural progression for Singapore’s evolving market.
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