SGX launches BTC & ETH perpetuals, draws new institutional liquidity
Singapore Exchange (SGX) launched Bitcoin (BTC) and Ethereum (ETH) perpetual futures two weeks ago and is reporting rising volumes and institutional uptake. SGX says the contracts are bringing new liquidity into crypto markets rather than merely shifting capital between venues, with about $250m cumulative notional and daily lots increasing since launch. Institutional participants — hedge funds, crypto-native desks and brokers — are using the regulated perps mainly for basis (cash-and-carry) strategies: buying spot or ETFs and hedging with short perpetual positions rather than taking outright leveraged longs. SGX positions the products as an Asian-time-zone benchmark and stresses stricter risk controls compared with unregulated venues, including higher initial margins, conservative collateral and central clearing to reduce cascading liquidations and counterparty risk. For traders, expect tighter spreads and improved price discovery during Asian hours, plus potential arbitrage and basis-trading opportunities between SGX and other venues. SGX says it will prioritise building liquidity and trust in BTC and ETH perps before considering options, altcoin perps or broader TradFi integrations.
Bullish
The launch and early institutional uptake of regulated BTC and ETH perpetual futures on SGX is likely bullish for the prices of those assets. Short-term: introduction of a regulated, centrally cleared venue with conservative margins may reduce volatility spikes from high-leverage activity on unregulated platforms, tightening spreads and improving price discovery in Asian hours; this can attract flows and support buy-side demand, especially from institutions conducting basis trades that buy spot/ETF exposure. Arbitrage between SGX perps and other venues may increase trading volumes and reduce price dislocations. Medium-to-long term: a trusted, liquid Asian derivatives venue can deepen market structure, draw sustained institutional capital, and encourage product expansion (options, more derivatives), all of which support greater market participation and structural demand for BTC and ETH. Offsetting factors: if institutional use is primarily hedging (short perps vs spot longs), net buying pressure on the spot may be limited; conservative margining could also constrain highly leveraged speculative flows. Overall, the net effect is positive for BTC and ETH market quality and price support, so the impact is categorized as bullish.