Singapore Exchange To Unveil New Bitcoin Product
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Singapore Exchange (SGX) wants to introduce a new way to trade Bitcoin. It hopes to offer Bitcoin perpetual futures in the second half of this year. The company said this plan is still waiting for approval from the Monetary Authority of Singapore (MAS).
SGX plans to offer Bitcoin perpetual futures because more investors are looking at digital money. Banks and investment firms need a safe place to trade Bitcoin. The company said it wants to give these institutions a secure and regulated option. This new product will help them trade without owning Bitcoin.
Bitcoin Trading Remains Popular Among Investors Despite Price Fall
According to the update, Bitcoin prices are currently increasing. The cryptocurrency recently reached $83,264. That is 1% lower than its price a day earlier and 10% lower than last week. Even with these price drops, many investors still want ways to trade Bitcoin without owning it.
Bitcoin perpetual futures help traders bet on Bitcoin prices without buying real Bitcoin. Singapore Exchange said these are special contracts that work like normal futures contracts, but they do not expire. This means traders can hold onto them for as long as they want.
Singapore is becoming a major hub for crypto businesses. Last year, the country gave out twice as many crypto licenses as before. It is not the only one moving in this direction. Other Asian markets are also looking at Bitcoin futures trading.
In Japan, the Osaka Dojima Exchange is waiting for permission to offer Bitcoin futures. If approved, it could be one of the first traditional exchanges in Asia to do so. Meanwhile, EDX Markets, a crypto firm backed by Citadel Securities, plans to bring crypto futures to Singapore early this year.
Bitcoin Futures Offer A Way To Manage Risk Without Owning Bitcoin
Bitcoin futures help investors manage risk without needing to own Bitcoin. They are useful for top companies that want to protect their funds from Bitcoin’s price changes. Some traders also use them to try and earn profits from price moves.
If SGX gets approval, Singapore could become even more important in crypto. Many investors and businesses already see it as a strong market for digital money. The company said this new product could bring more growth and attract more interest. It may help Singapore stay a top choice for crypto trading.
Other exchanges around the world are also working on crypto futures. The CME Group, a global trading company, announced last year that it would expand its Bitcoin and Ether futures. Its crypto head, Giovanni Vicioso, said these products help investors trade Bitcoin and Ether more easily.
With so many companies moving into this space, it looks like crypto futures will become more common. SGX’s new plan could bring more interest and opportunities for investors in Singapore and beyond.
