The derivatives arm of the Singapore Exchange (SGX) will soon allow institutions to trade one of the most popular instruments in the crypto market: perpetual futures.
SGX Derivatives announced the launch of bitcoin on Monday and ether perpetual futures, scheduled to go live on November 24, promising to offer the structure and confidence of global derivatives markets, fused with the flexibility of the most traded instruments of cryptocurrencies.
“Digital assets have made their way into the portfolios of institutional investors,” said Michael Syn, president of SGX Group. “We have taken the next logical and deliberate step: applying the same institutional discipline that underpins global markets to the most traded benefit of cryptocurrencies.”
Perpetual futures are futures with no expiration and represent the wild west of cryptocurrency trading. The ability to hold positions perpetually makes them a favorite among cryptocurrency enthusiasts who want flexibility without the pressure of rolling trades ahead of looming expiration deadlines typically seen in traditional futures.
These instruments are typically traded 24 hours a day in mostly offshore and unregulated locations, and still generate over $187 billion in daily volumes worldwide. These contracts use a funding rate mechanism, which involves periodic payments between buyers and sellers, to keep contract prices close to the actual market price of the underlying asset.
SGX perpetual futures reference iEdge CoinDesk crypto indices, ensuring alignment with benchmarks widely used for institutional price discovery.
“More than two-thirds of all cryptocurrency trading is done in derivatives, and perpetual futures offer unique features and benefits that have made them a favorite. We are excited to see SGX Derivatives bring perpetual futures to the domestic market with traditional margining and clearing, and we are delighted to support the benchmark rate for this innovative contract,” said Andy Baehr, head of product and research at CoinDesk Indices.
The iEdge CoinDesk Cryptocurrency Indices are a set of indices covering benchmarks and real-time reference rates for bitcoin and ether. The benchmark rates, published at 4 pm SGT (8 am UTC) every day, including commercial holidays and weekends, track the performance of cryptocurrencies on liquid and reliable exchanges over a predefined time period from 3 pm to 4 pm SGT.
Real-time indices are published every second, 24 hours a day, including holidays and weekends.
Industry players welcome the launch
Key industry players, including DBS Bank and centralized exchange OKX, welcomed SGX’s new offering, describing it as a timely and strategic step to provide institutions with access to crypto markets.
“We are committed to sharing our experience and expertise as pioneers in this space to foster a strong and responsible digital asset ecosystem in Singapore,” said Patrick Yeo, Head of Digital Assets, Global Financial Markets at DBS Bank.
Yeo explained that perpetuals will help institutional traders gain exposure to cryptocurrencies without owning them, facilitating greater accuracy and capital efficiency in portfolio management compared to spot trading, where traders buy or sell the actual asset immediately.
Gracie Lin, CEO of OKX Singapore, said the growing demand for regionally anchored benchmarks reflects a broader institutional trend of having diversified portfolios that combine exposure to cryptocurrencies with traditional assets.
“It is a natural step in the evolution of the Singapore market, and this deeper benchmark adds transparency and trust for institutional participants, helping to support the long-term growth of the ecosystem,” Lin noted.
