SGX's BTC and ETH Perpetual Futures Gain New Liquidity with Institutional Basis Trading
SGX's Bitcoin (BTC) and Ethereum (ETH) perpetual futures have been steadily building liquidity since their debut about two weeks ago. Institutions are primarily engaging in cash-and-carry arbitrage strategies rather than taking outright bullish positions, with a strong focus on basis trading.
The regulated perpetual futures offer enhanced risk management, featuring no high-leverage automatic liquidations and conservative margin requirements, with brokers potentially topping up for clients to safeguard positions. As of the latest figures, the BTC perpetual price stands around $90,213.01, while the ETH perpetual price is approximately $3,109.46.
On November 24, notional trading volume reached about $32 million across roughly 2,000 lots, with cumulative notional value now around $250 million. Market growth is attributed to new funds entering SGX, rather than trading volume being diverted from other venues or OTC desks.
SGX aims for its BTC and ETH perpetual contracts to become the benchmark during Asian trading hours, serving as a pricing, settlement, and liquidity reference point in the region. Future product development will prioritize liquidity and trust in these BTC/ETH perpetuals. There are no immediate plans for options or altcoin perpetual futures, though the exchange acknowledges a potential interest in S&P 500 and interest-rate perpetual futures.
