Core Viewpoint - Bitcoin has reclaimed the $90,000 level, but the underlying market conditions remain fragile, with traders adopting a defensive stance [1]. Market Sentiment - There are few signs of sustained optimism in crypto derivatives markets despite Bitcoin's recent price rebound [1]. - Most bets in Bitcoin perpetual and dated futures are concentrated in short-term contracts, indicating muted demand for longer-dated futures on the Chicago Mercantile Exchange, which is a key indicator of institutional interest [2]. Research Insights - Vetle Lunde from K33 Research noted that while morale is improving, overall sentiment remains cautious and hands-off despite the recent uptrend [3]. - Spot volumes, volatility, and derivatives leverage are near pre-December lows, with 86% of open interest in front-month expiry contracts, suggesting limited bullish positioning [4]. Price Movements - Bitcoin's price dropped 6.5% to $87,648 last year and was down about 1% to $92,107 as of early Wednesday [5]. - The first few trading days of the year saw a reversal of persistent selling, with significant inflows into Bitcoin ETFs marking the strongest single-day net inflow since October 7 [5]. Future Activity - Further gains in Bitcoin could stimulate activity in CME futures contracts, as the basis trade becomes attractive again [6]. Comparative Analysis - Bitcoin's relative stagnation compared to gold and equities raises questions about its value as an asset class, with declining volatility suggesting that the best performance days for cryptoassets may be behind [7].

Core Viewpoint - Singapore Exchange Derivatives will launch Bitcoin and Ethereum perpetual futures on November 24, becoming the first major Asian exchange to offer exchange-cleared crypto perpetual futures [1] Product Specifications - Bitcoin contracts will be sized at 0.2 BTC with a minimum price fluctuation of $1, while Ethereum contracts will be sized at 5 ETH with the same tick value [2] - The perpetual futures will utilize a funding rate mechanism to rebalance supply and demand, with funding rates capped at plus or minus 35 basis points and an average spread of 3 basis points when trading remains within defined parameters [3] Trading Sessions - Trading will occur in two sessions under Singapore time: the T session from 7:05 a.m. to 4:00 p.m. and the T+1 session from 4:05 p.m. to 5:15 a.m. the following day, with both contracts cash-settled in USD [4] Access and Regulation - Access to the contracts is limited to qualified participants, including institutional entities and expert investors, with accredited investors required to have net personal assets exceeding S$2 million or an annual income over S$300,000 [4][5] Market Context - Perpetual futures account for over $187 billion in daily trading volume globally, primarily on offshore, unregulated platforms, with SGX's launch following similar products introduced by Bitnomial Exchange, Coinbase Derivatives, and One Trading [6] - The launch aligns with Singapore's broader tokenization initiatives as the Monetary Authority of Singapore continues to develop regulated digital asset infrastructure [5] Institutional Perspective - Michael Syn, President of SGX Group, emphasized that the launch applies institutional discipline to crypto's most traded derivative structure, providing institutions with the trust and scalability required for crypto exposure [7]

Market Trend - Singapore Exchange to launch Bitcoin and crypto perpetual futures, indicating growing institutional interest in Asia [1] - Asia is becoming a significant player in the Bitcoin and crypto market [1]