SGX receives CFTC approval to open Bitcoin and Ethereum perpetual contracts to U.S. institutions

Singapore Exchange received approval from the U.S. CFTC to open Bitcoin and Ethereum perpetual contracts to institutional investors

The Singapore Exchange (SGX) has obtained approval from the U.S. Commodity Futures Trading Commission (CFTC) to directly provide its Bitcoin and Ethereum perpetual futures products to U.S. institutional investors. The regulatory license is based on Rule 48.10, which recognizes the status of foreign exchanges and allows them to provide order book access directly to U.S. market participants without having to establish a local entity in the United States.

Through this mechanism, SGX successfully connected U.S. traders to the Asian liquidity pool. SGX launched perpetual futures contracts for Bitcoin and Ethereum in November 2025. Since its launch, the cumulative transaction volume of these products has reached US$5.8 billion. With the implementation of CFTC approval, U.S. clearing members are actively preparing for customer introduction, and it is expected that the process will gradually begin in the next one to two months.

Rule 48.10 allows registered "foreign exchanges" like SGX to open their markets to U.S. participants, thereby expanding global liquidity and broadening institutional trading opportunities. Under this framework, SGX can now facilitate interaction between U.S. institutional trading desks and Asian liquidity providers. KC Lam, head of cryptocurrency derivatives at SGX Group, said that obtaining CFTC approval is a critical step that gives U.S. institutions access to contracts that were previously unavailable. He emphasized that this connection not only bridges traditional finance and Asian crypto markets, but also helps establish the status of cryptocurrency derivatives as regulated financial instruments.

The CFTC's decision means that U.S. trading desks can now directly participate in SGX's cryptocurrency derivatives market. This shift is expected to "make cryptocurrency derivatives a legal presence in a regulated asset class" by connecting institutional capital pools in the United States and Asia. For new U.S. customers, SGX requires a standard onboarding process to be completed. Clearing members will conduct due diligence, including Know Your Customer (KYC) reviews, manage deposits, and establish API connections. These steps usually take two to four weeks. Lam confirmed that SGX's FIS-based backend integration is in place, which will simplify the recent customer import process for U.S. clearing members.

In an environment where a single Federal Reserve decision or an unexpected altcoin listing can change market momentum in seconds, traders are increasingly pursuing execution efficiency and data monitoring capabilities. Instead of switching between decentralized platforms to view market charts, order flows and portfolio overviews, many institutional and retail investors are turning to privacy-focused solutions such as CryptoApps. The platform aggregates real-time charts, price alerts, hot currency news and key macro data-accessible without registering an account, and all displayed on a customizable screen.

Trading Activities and Future Product Planning

Since its debut, SGX has traded approximately 400,000 lots of Bitcoin and Ethereum perpetual contracts. As of the end of August, there were 1,300 open contracts worth approximately US$19 million. Among them, Bitcoin contracts account for 66% of the current open interest and 83% of the average daily trading volume. The most active trading day on record was 11,500 lots, with a nominal value of US$145 million.

Market participants use these perpetual contracts to trade and arbitrate directional positions, which often reflect broader macroeconomic views or take advantage of differences in funding rates between different platforms. Lam pointed out that integrating exchange infrastructure is a top priority and will subsequently expand to term contracts, options and other major cryptocurrencies in a steady and gradual manner. "Heavy infrastructure work comes first," Lam explained, and as more U.S. clearing members are introduced, the process of listing new digital asset derivatives will become more routine. SGG aims to gradually expand its product coverage and market influence, rather than pursuing rapid, simultaneous multiple releases.

The price range of BTC and ETH is still attracting attention

At the time of the report, Bitcoin was trading at US$77,907.04, down 1.80% from the previous day, but the weekly increase was 0.40%. Ethereum reported US$2,461.05, a daily decline of 1.52%, but a seventh-day gain of 3%.

Analyst Daan Crypto Trades pointed out that both Bitcoin and Ethereum are consolidating within clearly defined ranges. Ethereum maintained a narrow range around the US$2,460 support, while Bitcoin showed greater volatility at the US$77,800 support. Daan believes that once prices decisively break through these ranges, it could trigger a strong liquidation by those holding positions in the opposite direction. Other analysts offer a longer-term perspective, with Gerla, for example, comparing the current cycle to previous periods, when market weakness in September led to a year-end rebound, and predicting that if a similar pattern repeats, Bitcoin could hit $150,000 to $170,000 by 2029.

Focusing on Ethereum, analyst Nehal identified US$2,550 as the breakthrough threshold; if this level is effectively exceeded, the target may look towards the US$2,800 to 3,000 range, while US$2,350 is marked as a key support level to be held on.

Currently, Bitcoin and Ethereum are still trading within established ranges, and market participants are paying close attention to the early impact of the United States 'expanded access to the SGX cryptocurrency derivatives series.