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Perpetual Bitcoin futures may launch around the second half of 2025 on the Singapore Exchange (SGX). This is a significant milestone for the integration of traditional finance and digital assets.
The step aims to respond to increasing institutional interest in cryptocurrency trading in a regulated environment and to bolster SGX’s already robust presence in the derivatives space.
With the launch of perpetual futures, SGX was looking to offer institutional traders additional alternatives to hedge and speculate as they might see fit. These products stand apart from standard futures contracts with their lack of expiration date, allowing for continuous exposure to Bitcoin’s price actions.
Increased Demand From Traditional Finance and Crypto Firms
SGX’s move is part of a broader trend in the industry, with traditional financial establishments incorporating digital asset products. The exchange has started to get encouraging responses from both crypto-native firms and traditional market participants, with strong demand for compliant trading tools in Asia’s major financial hubs.
“A bitcoin product by SGX makes it clear for institutional investors that Bitcoin is… not a gambling asset but instead is something investment-grade,”
said Darius Sit, co-founder of crypto trading firm QCP. Ong Chengyi of Chainalysis also stated that approved Bitcoin futures act to bolster Bitcoin’s legitimacy as an investment and a suitable addition to diversified portfolios.
Product Features and Strategic Implications
With Bitcoin perpetual futures trading, one can take a long or short position on Bitcoin without having to worry about contract expiry. This provides increased flexibility in terms of exposure management, particularly in volatile markets.
SGX intends to introduce risk management measures similar to what is currently done in conventional financial markets to maintain stability. Matt Long at FalconX pointed out that the launch may open regulated access for a wider circle of institutional investors seeking exposure to digital assets.
So do Shi Le of Auros and Etelka Bogardi of Norton Rose Fulbright, who also noted that SGX’s infrastructure offers a combination of familiarity and security that resembles a known world for entities moving into the crypto space.
Risks and Strategies for Risk Mitigation
While they are expected to provide benefits, perpetual futures may also pose some risks, including increased volatility and lower liquidity compared to conventional instruments. SGX has been advised by legal experts to set up stringent monitoring, margin requirements, and the likes of industry-standard online circuit breakers that are already employed on equities and commodities.
“Because crypto derivatives can be subject to extreme price volatility and low levels of trading liquidity, robust risk controls are essential to protect investors,”
Etelka Bogardi warned.
Convergence of Digital Assets and Traditional Finance
SGX’s foray into crypto derivatives highlights an increasing overlap between traditional financial markets and decentralized digital assets. As regulatory clarity sharpens in Asia as well as across global markets, exchanges such as SGX are beginning to identify themselves as the gateways of institutional crypto adoption.
Proposed products such as this should lead to even broader participation and provide a mechanism for institutional investors to operate Bitcoin strategies without reliance on offshore or unregulated venues.
Current Price of Bitcoin & Market Performance
According to FingerLakes1 On April 22, 2025, Bitcoin is expected to open at $88,208, up by 0.79% per day. Besides, consistent accumulation by institutional players and positive regulatory developments have kept bullish sentiment buoyant during the first half of the year.
Bitcoin Price Forecasts for 2025
| Month | Low Estimate | Average Price | High Estimate | Source |
| April 2025 | $72,000 | $89,000 | $95,000 | |
| May 2025 | $100,858 | $112,108 | $123,358 | |
| June 2025 | $97,997 | $105,408 | $112,818 | |
| July 2025 | $83,803 | $84,839 | $85,875 | |
| December 2025 | $100,467 | $99,982 | $99,497 |
This could mean that if institutional inflows continue, with derivative instruments recently rolled out on legacy exchanges being a major catalyst, Bitcoin might reach this milestone much sooner than we expect.
Conclusion
The Singapore Exchange’s announcement of planned Bitcoin perpetual futures is a sign of growing institutional confidence in cryptocurrency as an asset class. As a conduit between conventional finance and digital innovation, the exchange is paving the way for wider adoption and providing professional investors with safer access to the cryptocurrency markets.
Amidst a good run for Bitcoin in 2025, this move by the exchange could have a significant impact on local and international investment strategies.
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FAQs
1. How do Bitcoin perpetual futures work?
Bitcoin perpetual futures are contracts with no expiration date, allowing traders to speculate on Bitcoin’s price indefinitely, utilizing leverage, and settle payments in cash without holding the asset.
2. How do Bitcoin JUSD derivatives differ from the SHM derivative Copper?
SGX, a leading exchange provider, focuses on meeting the increasing institutional demand for regulated exposure to crypto assets, enhancing its derivatives portfolio while maintaining market leadership in exchange-traded products for digital assets.
3. How does this help institutional investors?
For institutions, having access to Bitcoin trading in a regulated and familiar environment means hedging and risk management as well as exposure without having to use unlicensed or offshore platforms.
4. So is there a risk in trading these futures?
Yes. Primary risks are those of market volatility, leverage exposure, and liquidity squeeze. SGX must impose stringent risk measures such as margin requirements and price circuit breakers.
Glossary of Key Terms
1. Bitcoin Perpetual Futures
Bitcoin futures are a kind of derivative contract that allows bitcoin to be traded on an ongoing basis without an expiration date. Prices follow the spot market closely via the funding fee between long and short positions.
2. Derivatives Market
A financial market in which derivatives such as as futures and options Based on their value from underlying assets such as cryptocurrencies, equities, or commodities. Used for speculation or for hedging.
3. Institutional Investors
Big players like banks, hedge funds, or asset managers invest huge amounts of capital. Their participation is often a sign of the increasing maturity and credibility of financial products.
4. Singapore Exchange (SGX)
The main Singapore stock exchange for equities, derivatives, and fixed income products. The move by SGX into crypto represents a trend of traditional finance making inroads into the digital asset space.
5. Risk Management
A method to detect, analyze, and minimize financial risks. Crypto derivatives involve things like margin controls, circuit breakers, and daily price limits to ensure market stability.
6. Regulated Exchange
Since then, a reputable trading platform regulated by governmental financial authorities that ensures compliance with existing laws, provides investor protection, and ensures fair market practices is essential for institutional crypto adoption.
7. Crypto Derivative Product
A derivative is a financial instrument whose value derives from the value of a cryptocurrency, such as futures, options, or swaps. These enable traders to speculate on or hedge crypto price movements.
8. Market Liquidity
Describes how easily an asset can be purchased and sold without impacting the asset’s price. High liquidity of futures markets is of utmost importance for the trading of the asset as well as price discovery.
