The Singapore Exchange (SGX) is set to launch Bitcoin perpetual futures in the latter half of 2025, marking a significant advancement in the crypto derivatives market.

This initiative is aimed at institutional and professional investors, reinforcing Singapore's status as a leading hub for digital assets.

The move responds to growing demand from institutional clients for regulated access to digital assets, a trend already seen in the U.S. and Europe with established exchanges like CME and Deutsche Börse.

The launch is contingent upon approval from the Monetary Authority of Singapore (MAS), ensuring compliance with the stringent regulatory framework under the Payment Services Act.

By limiting participation to institutional investors, SGX aims to address the high-risk nature of these instruments and provide a secure trading environment.

Experts believe that SGX's regulated environment could enhance investor trust by mitigating counterparty risks associated with existing crypto exchanges.

The introduction of Bitcoin perpetual futures is expected to bolster liquidity and provide hedge funds and asset managers with a robust platform for trading in the Asia-Pacific region.

This initiative is part of Singapore's broader strategy to establish itself as a global hub for regulated crypto and web3 innovation, appealing to institutional investors.

SGX's entry into the crypto derivatives space is seen as a step towards legitimizing Bitcoin as a mainstream investment.

The perpetual futures could position SGX competitively against global players in the crypto market, where firms like Standard Chartered and Fidelity are already active.

Bitcoin perpetual futures are derivative contracts that allow traders to speculate on Bitcoin prices without owning the asset, featuring continuous trading with no expiration date.

Recent analysis indicates negative funding rates for Bitcoin perpetual futures, suggesting potential market volatility despite Bitcoin's price increase from approximately $74,000 to $91,300.