Singapore Exchange Derivatives Launches Bitcoin and Ether Perpetual Futures
Singapore Exchange's derivatives arm is set to offer institutions a new way to trade in the crypto market's most popular instruments: perpetual futures. The exchange announced the launch of bitcoin and ether perpetual futures, tied to iEdge CoinDesk Crypto Indices, on November 24. This move promises to bring the structure and trust of global derivatives markets to the crypto space, while maintaining the flexibility of the most traded crypto instruments.
Michael Syn, president of SGX Group, stated, 'Digital assets have become a significant part of institutional investors' portfolios. We are taking the next logical step by applying the same institutional discipline that underpins global markets to the most traded crypto payoffs.'
Perpetual futures, with no expiry dates, are a favorite among crypto enthusiasts for their flexibility. They allow traders to hold positions indefinitely, avoiding the pressure of traditional futures' rollover operations. These futures trade around the clock, generating over $187 billion in daily volumes worldwide, and use a funding rate mechanism to maintain contract prices.
The new SGX perpetual futures reference the iEdge CoinDesk Crypto Indices, aligning with widely used institutional benchmarks for price discovery. Andy Baehr, head of product and research at CoinDesk Indices, expressed excitement about the launch, highlighting the popularity of perpetual futures and their unique features.
The iEdge CoinDesk Cryptocurrency Indices provide real-time benchmarks and reference rates for bitcoin and ether, tracking their performance across liquid exchanges. Industry players, including DBS Bank and OKX, welcomed the launch, emphasizing its strategic value in providing institutions with access to crypto markets.
Patrick Yeo, head of digital assets at DBS Bank, noted that perpetual futures enable institutional traders to gain exposure to cryptocurrencies without direct ownership, enhancing portfolio management precision and capital efficiency. Gracie Lin, CEO of OKX Singapore, agreed, citing the growing demand for regionally anchored benchmarks and the trend of diversified portfolios blending crypto with traditional assets.
The launch is seen as a significant step in Singapore's market evolution, adding transparency and confidence for institutional participants. The exchange's commitment to sharing expertise and fostering a robust digital asset ecosystem is a key aspect of this initiative.
