Singapore Exchange Ditches Bitcoin & Crypto ETF Listings, What’s Happening?

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As a researcher with a background in financial markets and experience observing exchange trends, I find Loh Boon Chye’s stance on Bitcoin and cryptocurrency ETF listings on the Singapore Exchange intriguing. The growing global acceptance of crypto ETFs in various markets, such as Hong Kong, the United States, Australia, and Canada, adds to the intrigue.

As a researcher, I’ve come across contrasting developments in the cryptocurrency market: while Singapore Exchange (SGX) currently has no intentions to allow cryptocurrency listings based on CEO Loh Boon Chye’s recent statement, other exchanges such as those in Hong Kong, the United States, Australia, and Canada are increasingly embracing crypto Exchange-Traded Funds (ETFs). Despite this discrepancy, SGX maintains a positive stance towards these investment products.

Singapore Exchange CEO Denies Bitcoin & Crypto ETF Listings

At the Reuters NEXT event, Loh stated that the present market situation isn’t favorable for unveiling new products such as crypto ETFs. In response to questions about crypto ETF listings, he indicated “it’s not the case right now.” Additionally, he highlighted the importance of having a robust and enduring infrastructure in place before launching any new product.

As a researcher investigating the dynamics of the cryptocurrency market, I cannot overlook the significance of demand, effective governance, and a robust structure. The recent approval of Spot Bitcoin Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission has set an important precedent this year. This development has ignited similar endeavors globally, with Hong Kong being one of the notable contenders.

Significantly, Asia marked a first by introducing six Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong in April. Previously, these crypto ETFs had fueled the significant rise of Bitcoin to an impressive peak of $73,800 this year.

Presently, Bitcoin has achieved almost a 35% increase this year, despite setbacks caused by German government selloffs and Mt. Gox repayments. Likewise, Ethereum has experienced a surge of over 30% during the same period, fueled by expectations of upcoming Spot Ethereum Exchange-Traded Funds (ETFs).

CEO Hints At Embracing Digital Asset Listings In Future

Loh shared his opinion that Singapore’s current infrastructure isn’t sufficiently developed to accommodate crypto products like Bitcoin and ETFs. “At this moment,” he said, “Singapore’s ecosystem isn’t prepared for such offerings.” Yet, he left open the possibility for change in the future. “We’re always innovative,” he emphasized, “so who knows what the future holds?”

Currently, SGX is under scrutiny from major investors and industry organizations to boost its capacity to draw in listings from rapidly expanding businesses. Additionally, the exchange has encountered challenges related to meager trading volumes and undervalued stocks as a result of its small retail investor pool.

To tackle these obstacles, SGX has created a thriving business in Asian derivatives. Additionally, it continues to be an essential platform for global listings of real estate investment trusts. Regarding the matter of rejuvenating Initial Public Offerings (IPOs), Loh stated, “We have a plentiful supply in the pipeline.”

Loh explained that secondary listings on SGX could expand a company’s visibility. He mentioned that SGX was planning to offer several such listings in the future. Furthermore, the CEO of SGX highlighted that there were upcoming IPOs and some companies were preparing for a concurrent listing on both SGX and another stock exchange.

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2024-07-09 14:57