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Singapore Exchange (SGX) has filed an application with the CFTC to offer its <a href="https://xpertsstudio.com/bitcoin-suisse-plans-job-cuts-and-overseas-expansion/” title=”Bitcoin Suisse Plans Job Cuts and Overseas Expansion”>Bitcoin and Ether perpetual futures to U.S. institutional investors. If no objection is raised within 10 days, sales can proceed. SGX launched the products last November, but cumulative trading volume has reached only about $6 billion—a stark contrast to crypto-native platforms like Hyperliquid. With the CFTC having approved Kalshi’s Bitcoin perpetual futures in May, signaling a lower regulatory threshold in the U.S., SGX is positioning itself as a comprehensive exchange where institutions can trade crypto alongside equities, rates, FX, and other derivatives, while also offering access during Asian trading hours.
Key Elements
Singapore Exchange (SGX) has initiated the process to offer its Bitcoin and Ether perpetual futures to U.S. institutional investors. This would mark the first time a major traditional exchange brings perpetual futures—the most actively traded derivative product in the crypto market—into the U.S. regulatory framework.
SGX submitted an application to the U.S. Commodity Futures Trading Commission (CFTC) last month to offer the products to U.S. investors, Bloomberg reported on the 14th. As a foreign registered exchange, SGX can sell contracts to U.S. institutions if the CFTC raises no objection within 10 days.
The move gives SGX access to a broader institutional client base—including hedge funds, asset managers, and proprietary trading firms—following its launch of Bitcoin and Ether perpetual futures last November.
Perpetual futures are derivatives with no expiration date, allowing investors to place leveraged bets on crypto price direction without the maturity constraints of traditional futures. As regulators adopt an increasingly accommodative stance, traditional exchanges are entering this market, which sees hundreds of billions of dollars in monthly volume.
However, SGX’s products differ structurally from perpetual futures on crypto-native platforms. Trading hours are limited to 22.5 hours a day, five days a week, and members must post 35% margin in fiat currency. The exchange also does not employ the auto-deleveraging (ADL) mechanism used by some crypto platforms.
While the underlying assets—Bitcoin and Ether—trade around the clock, SGX does not view this as a problem. “The audience we are targeting is institutions, accredited investors, and professional investors,” KC Lam, SGX’s head of crypto derivatives, said in an interview with Bloomberg. “These are client segments that don’t trade on weekends.”
Liquidity remains overwhelmingly concentrated on crypto-native platforms. Decentralized exchange Hyperliquid processes $80 billion to $100 billion monthly in Bitcoin and Ether perpetual futures. By comparison, SGX’s total perpetual futures volume since launch stands at roughly $6 billion.
According to exchange data, 29,655 Bitcoin perpetual futures contracts and 6,758 Ether perpetual futures contracts were traded on SGX in August, with cumulative volume of 353,825 contracts from January through August.
Lam expects the U.S. market entry to serve as a catalyst for volume growth. “The U.S. is one of the most active markets for institutional participation in crypto, including futures and ETFs,” he said. “Turning our direction toward the U.S. market is a natural choice.”
The U.S. regulatory threshold is lowering
U.S. investors have historically accessed crypto perpetual futures primarily through offshore platforms. But the CFTC opened the door to domestic offerings in May when it approved the first Bitcoin perpetual futures contract on Kalshi, a regulated exchange and prediction market operator.
Michael Selig, CFTC chairman, described the decision as a move to bring one of the most liquid market segments in crypto into the U.S. regulatory framework.
The rapid growth of platforms like Hyperliquid has further underscored the appeal of perpetual futures. Users on such platforms can trade contracts linked to a wide range of assets, from stocks like SpaceX to commodities like crude oil and gold.
That growth has also drawn the attention of U.S. President Donald Trump. In August, he noted that Chairman Selig was working to bring Hyperliquid to the U.S. “in a fully compliant and lawful manner,” though he offered no specific commitments or timeline.
Competitive landscape and SGX’s differentiation strategy
Beyond Kalshi, crypto-native competitors are seeking to capitalize on the favorable regulatory environment to establish market positions.
Coinbase, the largest U.S. crypto exchange, announced in May that it can offer global crypto perpetual futures and options to institutional clients through a U.S.-regulated futures commission merchant (FCM). Earlier this month, it filed an application with the U.S. Securities and Exchange Commission (SEC) to offer stock-based perpetual futures. According to Coinbase, 80% of global crypto trading volume comes from derivatives.
SGX’s strategy is to carve out a niche as a comprehensive asset exchange serving professional investors. Through SGX, institutions can trade crypto alongside other derivatives including equities, rates, foreign exchange, and commodities.
Lam emphasized that access through an Asian exchange could be an advantage given that U.S. investors are constrained by local liquidity pools and trading hours. “After U.S. trading hours end, we can serve as a good complement to what they have,” he said.
He also expressed optimism about liquidity growth. “Liquidity begets liquidity,” he added. “More people will come and trade.”
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Source: finance.biggo.com