Singapore Exchange unveils BTC, ETH perpetual futures market

The Singapore Exchange’s derivatives division (SGX) announced on Monday that it is entering the major cryptocurrency markets and bringing an offshore instrument onshore, with the introduction of regulated BTC and ETH perpetual futures. SGX revealed that the launch of BTC and ETH perpetual futures is set to go live on November 24. 

Factually, perpetual futures are futures with no expiry. The company stated that SGX BTC perpetual futures and SGX ETH perpetual futures contracts enable rolling settlement for ongoing trading on a reliable exchange, as they offer a perpetual payout with no expiration date.

SGX expands institutional access to crypto derivatives

The average daily volume of perpetual futures exceeds $ 187 billion, with Asia at the center of this global growth. However, the majority of perpetual future flows are still priced off and settled on offshore platforms outside of Asia. 

Leonard Hoh, General Manager of Bitstamp by Robinhood in the Asia Pacific, revealed that the launch of BTC and ETH perpetual futures will enable institutions to trade and gain exposure to cryptocurrency markets with confidence. 

“Digital assets have made their way into institutional investors’ portfolios. We’ve taken the next logical and deliberate step, applying the same institutional discipline that underpins global markets to crypto’s most traded payoff.”

–Michael Syn, President of SGX Group.

The announcement revealed that Singapore Exchange’s perpetual futures reference the iEdge CoinDesk Crypto Indices to ensure conformity with benchmarks commonly used for institutional price discovery.

The iEdge CoinDesk Cryptocurrency Indices are a collection of indices that include reference rates and real-time benchmarks for ETH and BTC.

The iEdge CoinDesk Cryptocurrency Reference Rate Indices are released at 4 PM SGT every day, including weekends and business holidays. Additionally, SGX revealed that iEdge CoinDesk Crypto Indices are designed to track the performance of cryptocurrencies across liquid and trustworthy exchanges over a predetermined time window of 3 to 4 PM SGT.

SGX revealed that Prominent industry participants, such as centralized exchange OKX and DBS Bank, have applauded SGX’s new product.

Andy Baehr, Head of Product and Research at CoinDesk Indices, mentioned that derivatives account for about two-thirds of all cryptocurrency trading, and perpetual futures are popular due to their unique features and advantages. He added that his team was pleased to collaborate with Singapore Exchange to offer a connection to the global cryptocurrency ecosystem.

Patrick Yeo, Head of Digital Assets, Global Financial Markets, DBS Bank, stated that DBS is pleased to support the SGX’s launch as a member of the SGX’s cryptocurrency index committee.

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