SGX’s Bitcoin and Ether Perpetual Futures Draw Fresh Institutional Liquidity
SGX’s bitcoin and ether perpetual futures have gained traction since their launch two weeks ago, attracting new liquidity rather than redirecting funds from other markets, said Michael Syn, president of the SGX Group.
The contracts, which allow traders to speculate on crypto prices without expiration dates, recorded nearly 2,000 lots on Nov. 24, representing around $32 million in notional value. Cumulative trading has since reached roughly $250 million.
Syn emphasized that the growth reflects new money entering the market, not a shift from alternative investments or other exchanges. “Like our rupee/CNH futures launches, this creates new markets without affecting OTC volumes,” he said. Early participants include institutional hedge funds experienced with futures, alongside crypto-native players.
Making Crypto Accessible for Institutions
Perpetual futures, or “perps,” let investors maintain positions without rolling over contracts. While popular among crypto traders, the lack of regulated markets in Asia has limited institutional engagement. SGX aims to establish its BTC and ETH perps as the benchmark contracts during Asian trading hours.
Meeting Demand for Arbitrage
The launch addresses growing institutional demand for regulated contracts for basis trading, or cash-and-carry arbitrage. Traders buy crypto or ETFs in the spot market and hedge with futures to profit from price differences. According to Syn, up to 90% of Bitcoin ETF interest comes from basis traders rather than outright longs.
Risk Management and Stability
Unlike some decentralized exchanges that auto-deleveraged positions during the Oct. 8 crash, SGX uses conservative margining. “Positions remain steady for basis trades, with no high-leverage auto-liquidations,” Syn said, citing proven models from treasury and FX markets.
Future Plans
While options and altcoin perps may come later, SGX is prioritizing liquidity and trust in BTC and ETH perps first. Interest is also emerging in S&P 500 and interest-rate perps, but the focus remains on successfully executing the core contracts.
