thecryptobasic.com
Singapore Exchange’s derivatives arm will introduce perpetual futures for Bitcoin and Ethereum on November 24.
This marks a significant step in bringing a widely used crypto instrument into a regulated market. The move aims to meet rising institutional interest while preserving the familiar structure of traditional derivatives.
In a press statement, SGX Derivatives said the launch is to blend the trust of global derivatives markets with the flexibility of crypto trading.
Michael Syn, president of SGX Group, noted that digital assets are already part of institutional portfolios. Consequently, he said the exchange is now applying “institutional discipline” to an instrument traditionally associated with offshore venues.
Perpetual futures have no expiry date, which allows traders to hold positions indefinitely. This structure has made them popular among crypto participants who prefer to avoid contract rollovers.
Notably, the instruments dominate the sector, generating more than $187 billion in daily trading volume, according to SGX’s announcement.
Pricing, Mechanics, and Benchmarking
To keep prices in line with the underlying market, perpetual futures use a funding rate system, which redistributes payments between longs and shorts at fixed intervals.
Moreover, SGX’s contracts will reference the iEdge CoinDesk Crypto Indices, a set of benchmarks widely used for institutional price determination.
Andy Baehr, head of product and research at CoinDesk Indices, said crypto derivatives account for more than two-thirds of total crypto volumes. He also welcomed SGX’s move to offer the product in a regulated setting with standard margining and clearing.
The iEdge CoinDesk Crypto Indices provide both real-time readings and daily reference rates. Specifically, the benchmark rate is published at 4 p.m. SGT, including business holidays and weekends, and tracks trading activity across reliable exchanges. Meanwhile, real-time values update every second to capture market movements throughout the day.
Industry Reaction and Market Impact
Major market players have expressed support for the new offering. DBS Bank and OKX said the contracts arrive at a strategic moment for institutional adoption.
Patrick Yeo, head of digital assets at DBS Bank, said perpetual futures enable institutions to gain crypto exposure without holding the tokens. He added that the structure can improve capital efficiency compared with spot trading.
Gracie Lin, CEO of OKX Singapore, said rising institutional demand is driving interest in regional benchmarks for more diversified portfolios. She added that SGX’s move strengthens market transparency and supports long-term growth in the sector.
Ultimately, with the introduction of perpetual futures, SGX is positioning itself as a regulated gateway for institutional crypto trading.
By doing so, the offering brings a major offshore instrument onshore, providing familiar risk controls for investors who want digital asset exposure within a trusted market framework.