SGX’s Bitcoin and Ether Perpetual Futures Attract New Institutional Capital
SGX’s bitcoin and ether perpetual futures have gained traction since their launch two weeks ago, drawing fresh liquidity rather than reallocating funds from other markets, according to Michael Syn, president of the SGX Group.
The contracts, which allow traders to speculate on crypto prices without expiration, saw nearly 2,000 lots traded on Nov. 24—about $32 million in notional value—and cumulative trading has reached roughly $250 million. Syn emphasized the volume reflects new money entering the system, not transfers from other exchanges or investments. “Like our rupee/CNH futures launches, this creates new markets without affecting OTC volumes,” he said.
Targeting Institutional Traders
Perpetual futures, or “perps,” let investors maintain positions indefinitely without rolling contracts. Previously, the lack of regulated Asian markets limited institutional engagement. SGX aims to make its BTC and ETH perps the benchmark contracts for Asian trading hours.
Catering to Arbitrage Demand
The products address rising demand for basis trading—buying crypto or ETFs in the spot market while hedging with futures to profit from price differences. Syn noted that up to 90% of Bitcoin ETF interest comes from basis traders rather than outright longs.
Robust Risk Management
Unlike some exchanges that auto-deleveraged positions during the Oct. 8 crash, SGX employs conservative margining and maintains steady positions for basis trades. “There are no high-leverage auto-liquidations here,” Syn said.
Future Roadmap
While options and altcoin perps are on the horizon, SGX is focused on building liquidity and trust in BTC and ETH perps first. Interest is also emerging in S&P 500 and interest-rate perps, but the exchange’s priority is the core contracts.
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