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SGX's bitcoin and ether perpetual futures are now open to U.S. institutions
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- DeepHorus
The Singapore Exchange (SGX) has secured authorization from the U.S. Commodity Futures Trading Commission (CFTC) to open its bitcoin and ether perpetual futures contracts to U.S. institutional investors. This landmark decision, announced on September 10, 2024, marks a significant bridge between American trading desks and Asian liquidity pools in the regulated crypto derivatives market.
Under the CFTC's Regulation 48.10 framework, SGX can offer direct access to its trading system to qualifying U.S. participants without needing to register as a full U.S.-regulated exchange. This rule allows recognized Foreign Boards of Trade (FBOTs) to onboard U.S. clients under CFTC oversight. KC Lam, head of crypto derivatives at SGX Group, described the development as a pivotal milestone that legitimizes crypto derivatives as a regulated asset class.
Since their launch in late November 2025, SGX's perpetual futures products, known as BTP for bitcoin and ETP for ether, have accumulated a notable trading history. The contracts have processed $5.8 billion in cumulative volume, representing approximately 400,000 lots traded. As of the end of August, open interest across both products stood at 1,300 lots, valued at $19 million, with bitcoin dominating at 66% of open interest and 83% of daily average volume.
The regulatory approval allows U.S. institutions to tap into Asian liquidity, potentially enhancing market depth and efficiency. SGX's perpetuals are designed for both directional macro bets and arbitrage strategies, such as cash-and-carry trades that exploit funding-rate differentials between venues. The exchange is now actively preparing its U.S. clearing members to onboard new clients over the coming months.
A key differentiator of SGX's product is its risk management framework, which diverges from crypto-native perpetuals. Instead of auto-liquidations, SGX employs margin calls and top-up collateral requirements. This traditional approach aims to prevent the involuntary position closures and cascading liquidation events that can amplify market volatility during sudden price moves.
Looking ahead, the onboarding process for new U.S. clients is expected to take two to four weeks per client for KYC checks, deposits, and API connectivity. With its back-office integration now complete, SGX is poised to facilitate increased cross-border trading activity. The move is anticipated to attract more institutional capital and solidify SGX's position as a regulated hub for crypto derivatives in the global market.
