Kritika Mehta
Singapore Exchange (SGX) currently has no plans to permit cryptocurrency listings, according to CEO Loh Boon Chye’s latest statement. This view contradicts with the growing global adoption of crypto ETFs in Hong Kong, United States, Australia, and Canada. However, the Singapore Exchange also offered a positive take on these investment products.
Singapore Exchange CEO Denies Bitcoin & Crypto ETF Listings
At the Reuters NEXT conference, Loh mentioned that the current market conditions are not conducive to introducing such products. Moreover, when asked about the potential for crypto ETF listings, Loh responded, “not at the moment.” Furthermore, he emphasized the necessity of a supportive and sustainable ecosystem for any new product launch.
In addition, he highlighted the importance 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 has been a significant milestone for the crypto sector. It sparked similar initiatives worldwide, including Hong Kong.
Notably, Asia saw its first-ever spot cryptocurrency ETFs in April with the launch of six Bitcoin and Ethereum ETFs in Hong Kong. In addition, the crypto ETF inflows had earlier driven Bitcoin to an impeccable high of $73,800 this year.
Currently, BTC boasts a year-to-date gain of nearly 35% despite the recent downturn due to German government selloffs and Mt. Gox repayments. Similarly, Ethereum has soared over 30% in the same timeframe amid anticipation of a Spot Ether ETFs.
Also Read: BlackRock & Grayscale Bitcoin ETF Grab Investment From Iowa Bank, What’s Next?
CEO Hints At Embracing Digital Asset Listings In Future
Loh expressed his view that Singapore’s current ecosystem is not yet ready to support such crypto products. “The ecosystem, I feel, at this point in time, is not ready for such products in Singapore,” he stated. However, he did not rule out future possibilities of Bitcoin and crypto ETF listings. He added, “You never say never, as time evolves, and as the ecosystem comes together, we are always known to be the most innovative exchange or platform in the world.”
Meanwhile, SGX has been facing pressure from institutional investors and industry bodies to enhance its ability to attract listings of high-growth companies. Moreover, the exchange has struggled with low liquidity and valuations due to its limited base of retail investors.
Hence, to counter these challenges, SGX has developed a robust Asian derivatives business. Moreover, it maintains a significant role as a global listing venue for real estate investment trusts. In addressing the issue of revitalizing initial public offerings (IPOs), Loh mentioned, “we have a healthy pipeline.”
Loh elaborated that secondary listings could provide companies with greater exposure. It indicates that SGX has several such listings in the pipeline. In addition, the SGX CEO also noted that there are new IPOs in preparation and that some companies are gearing up for a simultaneous dual listing.
Also Read: DigitalX Gears to List Spot Bitcoin ETF on Australia’s ASX Exchange As Demand Soars
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
