Representations of the Bitcoin cryptocurrency are seen in this picture illustration taken June 7, 2021. REUTERS/Edgar Su/Illustration
SINGAPORE (Reuters) -The derivatives arm of Singapore Exchange (SGX) said on Monday that it would launch bitcoin and ether cryptocurrency perpetual futures trading on its platform.
Set to launch on November 24, the trading will be available to accredited and institutional investors, SGX said in a statement.
Perpetual futures are derivatives that allow traders to bet on asset prices without an expiry date and offer round-the-clock access and high leverage, making them a popular choice in fast-moving markets.
Investors and traders typically use derivatives to hedge risk, amplify returns or speculate on price movements without owning the underlying asset.
Crypto assets were on a tear for much of this year, buoyed by hopes of greater regulatory easing and clarity globally and renewed risk appetite.
Bitcoin reached a record high in October, but its rally has since stalled owing to dampened risk appetite as investors worry about the outlook for Federal Reserve rate cuts and a weakening U.S. economy.
(Reporting by Rae Wee; Editing by Jamie Freed)
