Singapore Exchange to Roll Out Bitcoin Futures Contracts
The Singapore Exchange has announced plans to offer perpetual futures contracts for Bitcoin to institutional investors by the second half of the year.Institutional traction towards Bitcoin, the largest cryptocurrency by market cap, has escalated recently. The asset has experienced global interest following the successful launch of the US Bitcoin spot exchange-traded funds (ETFs) and President Donald Trumps interest in the industry.Meanwhile, large financial institutions and nations are beginning to follow the United States' path to create a market for the pioneering cryptocurrency. Most recently, the largest exchange group in Singapore has announced its plans to launch a Bitcoin product.Another Exchange to Offer BitcoinA Bloomberg report today discloses that the Singapore Exchange (SGX), the largest market platform in Singapore, has announced plans to venture into the crypto derivatives business. The exchange would allow institutions and professional investors to trade Bitcoin futures contracts starting in the second half of 2025.The institution-only derivative products would allow clients to gain exposure to Bitcoin by betting on the assets future price action. Notably, these contracts do not warrant directly holding Bitcoin, offering users a taste of the assets liquidity without the hassle of owning it.Meanwhile, the report revealed that the SGX has sought the approval of the Monetary Authority of Singapore (MAS) and will launch the perpetual futures product if the regulator consents. Furthermore, the product has an Aa2 rating from Moodys, offering a trusted alternative for exposure to Bitcoin futures.The Singapore Exchanges imminent product reflects a broader adoption of the asset and the broader crypto industry in the city-state. Its largest bank by assets under management (AUM), DBS Bank, recently launched a blockchain-powered banking solution for institutional clients.Growing Demand for Bitcoin ExposureMoreover, Bloombergs report shows that SGX is not alone in this venture in Singapore. EDX Markets LLC announced in January that it would offer Bitcoin perpetual futures contracts to institutions in the city-state.These exchanges would compete with prominent derivative platforms like Robinhood, which recently announced plans to expand its services to the city-state this year after acquiring Bitstamp, a MAS-licensed exchange.Elsewhere, Japans Osaka Dojima Exchange is also considering launching the Bitcoin product amid growing global demand for the asset. The trading platform has applied for regulatory approval to launch the futures contracts and could become the first traditional exchange in Asia to offer them.
Text source: The Crypto Basic
