SGX Bets on Bitcoin and Ether Perps for Institutional Growth

Singapore Exchange (SGX) is about to list a very crypto-native product in a very TradFi way.

On 24 November 2025, SGX Derivatives will launch Bitcoin and Ether perpetual futures contracts, cleared and margined like any other listed derivative on the exchange. The contracts are cash-settled, reference the iEdge CoinDesk Crypto Indices, and are designed specifically for institutional, accredited and expert investors under MAS rules, not for retail.

The product offers up to 10x leverage with volatility-calibrated margins, daily settlement, and central clearing through SGX’s existing infrastructure. The pitch is simple: give Asia-based institutions a way to run directional, basis and hedging strategies in BTC and ETH, while keeping exposure inside a regulated, onshore venue rather than offshore platforms like Binance or OKX.

Who will actually trade this?

Likely client base and use cases:

a. Global and regional hedge funds

• Crypto funds already trading perpetuals offshore but constrained by mandates or risk limits.
• Multi-strategy and macro funds running relative value trades (cash and carry, curve trades between perps on SGX vs offshore venues, correlation trades versus equity or FX risk).

b. Banks, broker-dealers and structured product desks

• Banks that issue structured notes or certificates on BTC/ETH can use SGX perps as a hedging instrument in a jurisdiction with robust regulatory oversight.
• Dealers who already clear other SGX derivatives can plug this in with minimal additional operational setup.

c. Proprietary trading firms and market makers

• Firms active on CME crypto futures and offshore perps can arbitrage funding, basis and index differences across venues.
• Use SGX for Asia time-zone liquidity and for clients that require exchange-cleared products.

d. Asset managers, pension funds and family offices (via derivatives mandates)

• Institutions that cannot hold spot crypto directly for mandate, custody or tax reasons but are allowed to gain synthetic exposure via listed derivatives.
• Use cases include small strategic allocations, tactical macro overlays, or hedging existing BTC/ETH exposure held via ETPs or funds.

e. Corporates and treasury desks with BTC exposure

• Companies with Bitcoin on balance sheet can hedge denominated risk without engaging with offshore platforms.

Who qualifies

Access is limited to non-retail participants:

• Institutional investors such as banks, insurers, pension funds, asset managers and corporates.
• Accredited investors and expert investors under MAS definitions, which generally means high net worth individuals or professional trading entities that meet specified asset or income thresholds.

Retail traders in Singapore will not be able to trade these contracts directly. This keeps the product firmly in the professional segment and aligned with MAS’s cautious approach to complex crypto derivatives.

Does this give SGX a “new lease of life”?

Short answer: it is a smart strategic extension of SGX’s derivatives franchise, but it is not a magic fix for a “dying exchange”.

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A few context points:

• SGX is not actually dying. The group delivered FY2024 net profit of about S$526 million, with derivatives contributing more than a quarter of total revenue, even as equity derivatives volumes saw a mid-single digit decline.
• By FY2025, SGX reported its highest revenue and net profit since listing, supported in part by a rebound in equity derivatives volumes and growth in currency and commodities contracts.
• The weak spot has been the traditional equity listing business, where new IPO numbers and secondary fund raising have been relatively soft.

Against that backdrop, the crypto perpetuals launch does three things for SGX:

1. Diversifies the derivatives mix
   Crypto perps are one of the largest volume products globally on offshore venues. Even if SGX captures only a small fraction of that flow, it adds a new asset class into a derivatives business that management has clearly identified as its growth engine.
2. Strengthens Singapore’s positioning as a regulated digital asset hub
   Having exchange-cleared BTC and ETH perpetuals under MAS oversight is consistent with Singapore’s “measured progress” stance: no meme token casinos, but institutional-grade infrastructure for major assets. That supports SGX’s brand with global institutions who already use it for equity index, FX and commodities risk.
3. Creates optionality rather than immediate transformation
   Initial volumes are likely to be modest compared with established SGX equity index futures. Take-up will depend on:

• How competitive SGX is on fees, funding rates and margin efficiency relative to CME and offshore venues.
• Whether banks and large asset managers decide to centralise more of their crypto derivatives activity on regulated exchanges for compliance reasons.

So, will this single product revive SGX’s equity listing business or suddenly re-rate the stock? Unlikely on its own. What it does do is:

• Signal that SGX intends to compete seriously in listed crypto derivatives.
• Offer a credible, onshore alternative for institutions that are increasingly uncomfortable with counterparty and legal risks on unregulated platforms.
• Add incremental, higher-margin derivatives flow that fits neatly into SGX’s existing clearing and risk infrastructure.

In other words, it is an important strategic building block in SGX’s evolution into a multi-asset derivatives and infrastructure platform, rather than a lifeline for a failing exchange.

Key takeaways on users and qualification

Product
BTC and ETH perpetual futures, 10x leverage, margined and centrally cleared, referencing iEdge CoinDesk indices.

Access
Institutional, accredited and expert investors only; no retail.

Likely users
Hedge funds, prop trading firms, banks, structured product desks, asset managers, pensions, family offices and corporates with BTC/ETH exposure.

Role for SGX
Incremental growth and strategic positioning in digital assets, not a wholesale turnaround story.

References:

• https://www.sgx.com/derivatives/products/cryptoperps
• https://www.sgx.com/derivatives/crypto-perpetual-futures
• https://cointelegraph.com/news/singapore-exchange-bitcoin-ether-perpetual-futures-institutional-demand
• https://www.coindesk.com/markets/2025/03/10/singapore-exchange-to-launch-bitcoin-perpetual-futures-in-2025
• https://www.reuters.com/markets/asia/singapore-exchange-roll-out-open-ended-bitcoin-futures-listing-bloomberg-reports-2025-03-10/
• https://www.ainvest.com/news/sgx-regulated-perpetual-futures-reshaping-institutional-crypto-risk-management-capital-efficiency-2511/
• https://www.businesstimes.com.sg/pulse/article/7830486
• https://www.morningstar.com/news/pr-newswire/20251117cn21271/sgx-derivatives-breaks-new-ground-with-institutional-grade-crypto-perpetual-futures
• https://www.businesstimes.com.sg/companies-markets/sgx-launch-bitcoin-ethereum-perpetual-futures-nov-24

Disclaimer:
This post is for informational and educational purposes only. It is not financial advice, investment guidance, or a recommendation to buy or sell any token or asset. Some details, figures, and examples were accurate at the time of publication but may change over time. Always do your own research and think for yourself before making financial decisions.