According to a report by Bloomberg, Singapore Exchange Limited (SGX) is considering launching a lasting future for Bitcoin (BTC) to help traditional financial institutions become more involved in the crypto industry.
SGX is planning to introduce the contract in the second half of 2025 and has pending approval from the Singapore Monetary Authority (MAS). These futures are limited to institutional clients and professional investors, except for retailers.
SGX aims to bridge the gap between regulated financial markets and the crypto sector. The product is expected to provide institutions with exposure to digital assets while mitigate risks associated with unregulated platforms.
Unlike standard futures contracts, permanent futures have no expiration dates. This allows traders to continually infer the price transfer of BTC without taking direct ownership of the asset.
Arthur Cheong, founder and CIO of Defiance Capital, noted that this marks the launch of permanent futures for traditional exchanged bitcoin, which was initially regulated. He believes the move will strengthen participation in BTC base trade, particularly due to long-term basis hedging.
The SGX is one of the bigger traditional exchanges with a market capitalization of over $63.3803 billion in December 2024.
Institutional benefits
SGX’s interest in Bitcoin’s future reflects the growth trends of traditional financial institutions that have entered Crypto.
This expansion has recently gained momentum following the development of regulations, particularly in the US.
Market observers suggest that evolving US policies is driving institutional interest in Bitcoin, particularly under the Donald Trump administration.
The perceived legitimacy of digital assets encourages more traditional companies to explore crypto-related products, further integrating the sector into mainstream finance.
Crypto hub
Meanwhile, SGX’s latest initiative is consistent with Singapore’s broader strategy to solidify its position as an Asian digital asset hub.
Over the years, Singapore’s regulatory framework has expanded to support responsible crypto innovation, strengthening its reputation as a stable, business-friendly environment.
Industry experts believe this progressive approach makes the country an attractive destination for long-term digital asset investments.
As a result, the country has issued numerous cryptographic licenses to players in major industries, including exchanges such as OKX and Gemini.
(tagstotranslate)Bitcoin
