SGX Plans Bitcoin Perps Launch Citing “Burgeoning” Market

Singapore Exchange (SGX) is rolling out a new suite of futures contracts that are making their way from cryptocurrency markets into the traditional financial sphere.

The so-called perpetual futures (perps) don’t have an expiry date; instead they’re funded on an hourly basis and can be held indefinitely, allowing holders to speculate on the price of an asset without a cut-off point.

SGX says the decision to explore launching these contracts on the price of bitcoin was driven by a growing interest from institutional investors, with initial feedback from both crypto and TradFi participants coming back as positive. The launch is expected in the second half of the year, pending regulatory approvals.

“SGX Group is leading the way in the burgeoning international institutional crypto market with perpetual futures. In a space where confidence and credibility make all the difference, our innovative offering on a trusted, regulated platform will significantly expand institutional market access,” a spokesperson for SGX tells The Full FX. “While subject to due regulatory process, initial feedback on our product has been positive from both DeFi and TradFi participants.”

Decentralised finance, or DeFi, currently has $87 billion in assets “locked” into the space, with daily trading volumes of perps standing at $12.8 billion.