Singapore Exchange (SGX) Drops Bitcoin and Crypto ETF Listings, What’s Next?

Singapore Exchange (SGX) CEO Loh Boon Chye recently stated that the exchange currently has no plans to allow cryptocurrency listings, particularly cryptocurrency exchange-traded funds (ETFs). Despite the increasing global acceptance of crypto ETFs in several countries, including Hong Kong, the United States, Australia, and Canada, SGX remains hesitant about introducing these investment products.

During the Reuters NEXT conference, Loh pointed out that the existing market conditions do not favour the introduction of crypto ETFs. When questioned about the potential for such listings, Loh stated that it is not feasible at the moment. He emphasized the need for a supportive and sustainable ecosystem for the successful launch of any new product.

Loh also underscored the significance of demand, governance, and structure. The approval of Spot Bitcoin Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission earlier this year marked a major milestone for the crypto sector, influencing similar initiatives globally, particularly in Hong Kong.

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Notably, Asia witnessed the launch of its first spot cryptocurrency ETFs in April, consisting of six Bitcoin and Ethereum ETFs in Hong Kong. These crypto ETF inflows earlier drove Bitcoin to reach a remarkable high of $73,800 this year.

Despite recent downturns due to German government selloffs and Mt. Gox repayments, BTC has seen a year-to-date gain of nearly 35%. Similarly, Ethereum has surged over 30% in the same period amid the anticipation of Spot Ether ETFs.

While currently deeming the ecosystem not ready to support such crypto products, Loh hinted at the potential for Bitcoin and crypto ETF listings in the future. He mentioned that although the ecosystem is currently not prepared for these products in Singapore, things may evolve over time, and SGX is known to be an innovative exchange willing to adapt as the ecosystem matures.

SGX has been under pressure from institutional investors and industry bodies to improve its capabilities to attract listings of high-growth companies, as well as to address issues of low liquidity and valuations due to its limited base of retail investors.

To tackle these challenges, SGX has developed a strong Asian derivatives business and maintains a significant role as a global listing venue for real estate investment trusts. In terms of revitalizing initial public offerings (IPOs), Loh highlighted a healthy pipeline, emphasizing that secondary listings could offer companies greater exposure. Additionally, SGX has several listings and new IPOs in preparation, with some companies preparing for simultaneous dual listings.

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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
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