The derivatives arm of 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, with the promise of offering the structure and confidence of global derivatives markets, merged with the flexibility of crypto’s most traded instruments.
“Digital assets have made their way into the portfolios of institutional investors,” said Michael Syn, chairman of SGX Group. “We have taken the next logical and deliberate step: applying the same institutional discipline that underpins global markets to crypto’s most traded gains.”
Perpetual futures are futures contracts with no expiration, representing the Wild West of cryptocurrency trading. The ability to hold positions at any time makes it a favorite among crypto enthusiasts looking for flexibility without the pressure of rolling over before impending expirations typically seen in traditional futures contracts.
These instruments typically trade 24 hours a day on primarily offshore and unregulated platforms, still generating more than $187 billion in daily volumes worldwide. These contracts use a funding rate mechanism, involving 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 widely used benchmarks for institutional price discovery.
“More than two-thirds of all cryptocurrency trading involves 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 with traditional margining and clearing, and we are excited to support the reference rate for this innovative contract,” said Andy Baehr, Head of Product and Research at CoinDesk Indices.
The iEdge CoinDesk Cryptocurrency Indices are a suite of indices covering real-time benchmarks and reference rates for bitcoin and ether. The benchmark rates, published daily at 4:00 p.m. SGT (8:00 a.m. UTC), including public holidays and weekends, track the performance of cryptocurrencies on liquid and trusted exchanges over a predefined time window from 3:00 p.m. to 4:00 p.m. SGT.
Real-time indices are published every second, 24 hours a day, including holidays and weekends.
Industry players welcome the launch
Major industry players, including DBS Bank and centralized exchange OKX, have 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 expertise and knowledge as a pioneer in this space to foster a robust and responsible digital assets ecosystem in Singapore,” said Patrick Yeo, Head of Digital Assets for Global Financial Markets at DBS Bank.
Yeo explained that perpetuals will help institutional traders gain exposure to cryptocurrencies without owning them, thereby facilitating greater precision 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 mixing crypto exposure and traditional assets.
“This is a natural step in the evolution of the Singapore market, and this deeper reference point adds transparency and trust to institutional participants, helping to support the long-term growth of the ecosystem,” Lin noted.
