SGX Targets US Institutions with Crypto Perpetual Futures

Singapore Exchange Ltd filed with the Commodity Futures Trading Commission to offer cryptocurrency perpetual futures to US institutions. The exchange is the first major traditional venue to bring these leveraged contracts into the US market. The filing relies on a 10-day no-objection period under its registered overseas exchange status. This move grants SGX access to hedge funds, asset managers, and proprietary trading firms.

Perpetual futures allow traders to hold leveraged positions without expiry dates. SGX launched Bitcoin and Ether perpetual futures in November of last year. The contracts trade 22.5 hours a day, five days a week. Participants must post 35 percent margin and use fiat collateral. The exchange does not use automatic deleveraging mechanisms common on crypto-native platforms.

Institutional Liquidity Remains Concentrated Offshore

Most perpetual futures liquidity currently resides on decentralized platforms. The Hyperliquid platform handles between US$80 billion and US$100 billion in monthly trading volume for Bitcoin and Ether. SGX has recorded approximately US$6 billion in volume since its launch. The gap in volume highlights the challenge of migrating institutional flows to traditional venues.

SGX executives argue that institutional clients do not require 24/7 trading access. KC Lam, head of crypto derivatives at SGX, stated that accredited investors typically trade during standard business hours. The exchange may support 24/7 trading in the future if market conditions demand it. This approach aligns with the operational rhythms of traditional finance.

Regulatory Shifts Enable Domestic Access

The US regulatory environment for crypto derivatives has shifted recently. The CFTC approved the first true Bitcoin perpetual contract on Kalshi in May. CFTC Chairman Michael Selig described this as a step toward integrating crypto markets into US regulation. President Donald Trump noted that Selig is working to bring compliant crypto platforms into the US.

SGX views this regulatory opening as a catalyst for growth. Lam believes that increased institutional participation will drive volume. He cited the principle that liquidity attracts further trading activity. The exchange expects US institutions to bridge the volume gap with offshore venues.

SGX Volume Data Shows Steady Growth

SGX traded 29,655 Bitcoin perpetual futures in August. It also traded 6,758 Ether perpetual futures during the same month. The combined total for the first eight months of the year reached 353,825 contracts. These figures come from exchange data reported by GN markets/crypto (en-US). The steady increase suggests growing interest among institutional participants.

The competition for derivatives market share intensifies as traditional exchanges enter the space. Crypto-native venues continue to dominate in raw volume. SGX’s entry into the US market represents a strategic pivot. The outcome will depend on the willingness of institutional investors to adopt these new contracts. The market remains divided between offshore and regulated onshore venues.