🚀 Singapore Exchange to Launch Bitcoin Perpetual Futures
📈 The Singapore Exchange (SGX) is set to launch bitcoin (BTC) perpetual futures later this year, aiming to maintain its competitive edge as cryptocurrencies become a recognized investment asset class. This move aligns with a global trend of traditional exchanges embracing crypto derivatives amid increasing institutional demand.
🕒 Unlike traditional futures, perpetual futures do not have an expiration date, allowing investors to trade on BTC’s price direction indefinitely. SGX has received positive initial feedback from both crypto-native and traditional finance players.
“A bitcoin product by SGX is clear guidance for institutional investors that Bitcoin is… not a gambling asset but instead is something investment-grade,”
stated Darius Sit, founder of crypto trading firm QCP. This sentiment is echoed by Chainalysis’ Ong Chengyi, who sees it as
“firmly entrenching bitcoin as an investible asset”
suitable for professional portfolios. Robert Krugman of Broadridge added that it
“validates the growing acceptance of cryptocurrencies… within regulated markets.”
🌟 The launch is expected to attract new investors to SGX and leverage its established strength in derivatives. It offers both crypto-savvy and institutional investors a regulated platform for trading and hedging, as highlighted by Auros’ Shi Le and Norton Rose Fulbright’s Etelka Bogardi.
⚠️ However, some experts like Bogardi caution about potential risks such as volatility and lower liquidity. She emphasized the need for SGX to implement robust risk management measures similar to those used for traditional futures.
🔗 The introduction of bitcoin perpetual futures by SGX signals a growing convergence between traditional finance and the digital asset space, potentially paving the way for broader adoption and more sophisticated crypto investment products in regulated environments.
