SGX’s Bitcoin and Ether Perpetual Futures Attract Fresh Institutional Liquidity, Exchange President Says

SGX’s bitcoin and ether perpetual futures have gained notable traction since their launch two weeks ago, drawing new liquidity rather than diverting cash from other markets, according to Michael Syn, president of the SGX Group.

The cryptocurrency derivatives, which let institutional traders speculate on asset prices without an expiration date, saw nearly 2,000 lots traded on Nov. 24 alone, equivalent to around $32 million in notional value. Cumulative trading has since reached approximately $250 million.

Crucially for SGX, the growing volume appears to reflect new capital entering the market, rather than funds being shifted from other investments or rival exchanges. The exchange’s futures are incrementally building liquidity and supporting price discovery, rather than pulling volume from over-the-counter desks or competing platforms.

“Like our rupee/CNH futures launches, this creates new markets without undermining OTC activity,” Syn said in an interview. Early trends show participation from institutional hedge funds familiar with futures, alongside active engagement from crypto-native players.

Perpetual Futures: A Convenient Entry Point for Institutions

Perpetual futures, or “perps,” allow investors to speculate on an asset’s price without needing to roll over positions upon contract expiry. While popular among crypto traders for years, the absence of regulated perpetual markets in Asia kept many institutional investors on the sidelines.

“We are targeting an Asian-time-zone mother contract,” Syn explained, emphasizing SGX’s goal to make its BTC and ETH perps the benchmark contracts for pricing, settlement, and liquidity during Asian trading hours.

Meeting Institutional Demand for Arbitrage Opportunities

The launch of these perpetual contracts responds to growing institutional demand for regulated vehicles to conduct basis trading, also known as cash-and-carry arbitrage.

“It begins with the voice of the customer,” Syn said. “Institutional interest is increasingly in basis trading—buying spot or ETFs and hedging with futures. Up to 90% of Bitcoin ETF demand comes from basis traders, not outright longs. Customers want short-dated perps on a regulated exchange like SGX, not 90-day futures with noise.”

Basis trading involves simultaneously buying the cryptocurrency (or related ETF) in the spot market and selling futures, allowing traders to profit from the price difference between the two. While perps were first popularized by BitMEX over a decade ago, the lack of regulated markets in Asia kept institutional players largely absent—an issue SGX aims to address with compliant contracts that mitigate offshore risks.

Enhanced Risk Management

Futures remain one of the most widely traded crypto products, though the market has faced controversy following the Oct. 8 crash. Platforms such as Hyperliquid, a decentralized exchange for perpetual futures, auto-deleveraged positions during the downturn, wiping out profitable bets and socializing losses across traders. Some analysts argue that affected basis traders became spot-market sellers, contributing to November’s price declines.

SGX’s regulated perps employ a different risk framework.

“There are no high-leverage auto-liquidations here—that’s an OTC construct lacking proper clearing,” Syn said. “We apply conservative margining, with brokers topping up on behalf of clients. Positions remain steady for basis trades (long $1 spot = short $1 perpetual), a model long proven in treasury and FX basis markets.”

Looking Ahead

When asked about potential expansions into options or altcoin perps, Syn stressed that the immediate focus is on building liquidity and trust in BTC and ETH perps. Options require deep underlying liquidity to function effectively, though SGX has noted rising interest in S&P 500 and interest-rate perps.

“The broader roadmap mirrors what’s available in unregulated markets, but our priority remains executing the core contracts successfully before moving into new products,” Syn said.