What changes have the Singapore Exchange brought about by opening Bitcoin and Ethereum perpetual con

Singapore Exchange approved to open Bitcoin and Ethereum perpetual contracts to U.S. institutional investors

The Singapore Exchange (SGX) has been authorized by the U.S. Commodity Futures Trading Commission (CFTC) to allow eligible U.S. institutional investors to directly access its Bitcoin and Ethereum perpetual contracts. U.S. trading companies can access these contracts through SGX clearing members, and the check-in process usually takes two to four weeks.

Since its launch in November 2025, the cumulative trading volume of this contract has reached US$5.8 billion. SGX said it plans to further enrich its product line and launch Bitcoin and Ethereum futures and options with clear expiration dates, providing institutional traders with more ways to manage their exposure to cryptoassets through their derivatives markets.

Why perpetual contracts are becoming increasingly important in the crypto market

Perpetual contracts have become one of the main tools for discovering traders 'expectations about cryptocurrency price movements. Unlike traditional futures, perpetual contracts have no expiration date, so traders do not need to repeatedly close positions and reopen positions to maintain market exposure.

This structure also concentrates liquidity. Funds are no longer spread among different contracts that expire in September, December or March, but are concentrated in one ongoing perpetual contract. Through the funding rate mechanism, derivative prices can be aligned with the underlying assets. The CFTC also highlighted these characteristics in its review of sustainable products, including their potential uses for hedging and price discovery.

The importance of this market is evident in current U.S. derivatives data. As of September 1, Coinbase Derivatives had 173,212 open interests in micro bitcoin perpetual contracts, while micro Ethereum perpetual contracts had 371,191. The CFTC data also shows that leveraged funds and other reportable traders hold large positions.

This makes perpetual contracts work beyond mere speculation. Funds that hold Bitcoin can use them to reduce market exposure without immediately selling spot positions, while market makers can use derivatives to manage inventory and price risk.

Because of this, the growth of regulated perpetual contracts is crucial to the entire market. As more professional traders use these contracts for hedging and positioning, derivative prices will have a greater impact on broader crypto market pricing.

Can Singapore challenge the dominance of U.S. crypto derivatives?

SGX's greater opportunity lies in establishing itself as one of the primary venues for institutional crypto risk management. The traditional derivatives industry is already located in financial centers such as Chicago, London and Singapore, with exchanges competing for trading volume by offering different contracts, clearing arrangements and access to global clients. The crypto market is increasingly following this pattern.

The timing is worth noting, as the CFTC recently certified a growing list of sustainable products. Its records show that certified contracts involve Ethereum, Solana, XRP, Litecoin, Dogecoin, Avalanche and Chainlink, among which many have approval dates on September 2. This creates a broader area of competition than just involving Bitcoin and Ethereum.

Singapore is located between major Asian financial markets and has long been a center for institutional trading and clearing. If its crypto derivatives business is successful, it will provide global companies with another regulated venue to manage positions during Asian trading hours.

However, SGX still needs to prove that institutional investors will use its platform on a large scale. The U.S. authorization it has obtained removes barriers to entry, but only continued liquidity, competitive costs and reliable execution capabilities can translate this authorization into a substantial share of global crypto-derivatives transactions.

Users are optimistic about the expansion of institutional access to encryption

Nexo pointed out that institutions 'channels to enter the crypto market continue to expand and believes that SGX approval is another signal that professional investors will gain more access to the market. Travis shares similar views, calling the development an "important bridge for institutional crypto" and emphasizing its potential to connect traditional financial markets with digital assets.

Joe supported this view, saying the approval "will undoubtedly significantly accelerate agency adoption." At the same time, Jack focused on the product itself, arguing that as these contracts gain wider acceptance outside of non-crypto native trading platforms,"perpetual contracts are rapidly moving into the mainstream."

Meanwhile, Singapore is promoting the provision of special licenses to stablecoin issuers under proposed amendments to the Payment Services Act. The Monetary Authority of Singapore (MAS) will only allow licensed issuers that meet its requirements to promote their tokens as "MAS-regulated stablecoins."