Bitcoin (BTC) and Ether (ETH) Perps Are Building Liquidity Incrementally: SGX’s Syn
The post Bitcoin (BTC) and Ether (ETH) Perps Are Building Liquidity Incrementally: SGX’s Syn appeared on BitcoinEthereumNews.com. SGX’s bitcoin BTC$90,220.44 and ether ETH$3,108.25 perpetual futures have become increasingly popular since their debut two weeks ago, and that growth represents new liquidity rather than cash redirected from elsewhere, said Michael Syn, president of the Singapore exchange holding company. The products, cryptocurrency derivatives that allow institutional traders to speculate on the price of an asset without an expiration date, saw nearly 2,000 lots traded on Nov. 24, representing about $32 million in notional value. That’s crept up to $250 million in cumulative trading so far. Key for the exchange is the volume seems to be new money flowing into the system, not funds diverted from alternative investments or other exchanges. The futures are building liquidity and price discovery incrementally, not by pulling volume from rival desks such as over-the-counter trading. “Like rupee/CNH futures launches, it creates new markets without killing OTC,” Syn said in an interview, adding that early volume trends point interest from institutional-grade hedge funds experienced with futures, alongside active participation from crypto-native players. Perpetuals, or perps, allow investors to bet on the future price of an asset without the hassle of having to roll over their positions when the future expires. The strategy has been popular with crypto traders for years, but the lack of regulated markets, especially in Asia, kept institutions on the sidelines. “We are targeting an Asian-time-zone mother contract,” Syn said. In other words, the exchange aims to establish its BTC/ETH perps as the benchmark contract during Asian trading hours, representing a go-to reference for pricing, settlement and liquidity in the time zone. Institutions are chasing arbitrage Syn said the perpetual products were introduced to meet mounting institutional demand for regulated contracts for basis trading, also known as cash-and-carry arbitrage. “It begins with the voice of the customer … Institutional interest is now…
BitcoinEthereumNews2025/12/09 17:52