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Singapore Exchange Drops Bitcoin, Cryptocurrency ETF Listing: What’s Going On?
Singapore Exchange (SGX) currently has no plans to allow cryptocurrency listings, according to the latest statement from CEO Loh Boon Chye. This view contradicts the growing global adoption of crypto ETFs in Hong Kong, the United States, Australiaand Canada. However, the Singapore Stock Exchange also gave a positive opinion on these investment products.
Singapore Exchange CEO Denies Bitcoin, Cryptocurrency ETF Listings
At the Reuters NEXT conference, Loh said that current market conditions are not conducive to the introduction of such products. Also, when asked about the potential for crypto ETF listings, Loh replied, “not at the moment.” He also stressed the need for a supportive and sustainable ecosystem for any new product launches.
He also stressed the importance of demand, governance and structure. The approval of Bitcoin Spot Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission earlier this year was a significant milestone for the cryptocurrency industry. It sparked similar initiatives around the world, including Hong Kong.
Notably, Asia saw its first spot cryptocurrency ETFs in April with the launch of six Bitcoin and Ethereum ETFs in Hong Kong. Additionally, cryptocurrency ETF inflows had previously pushed Bitcoin to an impeccable high of $73,800 this year.
BTC is currently up nearly 35% for the year despite a recent dip due to German government sell-offs and Mt. Gox redemptions. Similarly, Ethereum is up over 30% in the same time frame in anticipation of a Spot Ether ETF.
Read also: BlackRock, Grayscale Bitcoin ETFs Get Investment From Iowa Bank. What Happens Next?
CEO Hints at Digital Asset Listing Adoption in Future
Loh expressed his view that the current ecosystem in Singapore is not yet ready to support such crypto products. “The ecosystem, in my opinion, at this point in time, is not ready for such products in Singapore,” he said. However, he did not rule out future possibilities of Bitcoin and crypto ETF listings. He added, “You never know, as time evolves and the ecosystem comes together, we are always known to be the most innovative exchange or platform in the world.”
Meanwhile, SGX has faced pressure from institutional investors and industry bodies to improve its ability to attract high-growth company listings. The exchange has also struggled with low liquidity and valuations due to its limited retail investor base.
Therefore, to counter these challenges, SGX has developed a strong Asian derivatives business. It also maintains a significant role as a global listing venue for real estate investment trusts. Addressing the issue of revitalizing initial public offerings (IPOs), Loh said, “we have a healthy pipeline.”
Loh explained that secondary listings could provide companies with greater exposure. This indicates that SGX has several such listings in the pipeline. In addition, the SGX CEO also noted that there are new IPOs in the pipeline and that some companies are preparing for simultaneous dual listings.
Read also: DigitalX Prepares to List Spot Bitcoin ETF on Australia’s ASX as Demand Skyrockets