Wall Street Should Be Cautious As Exchanges Like Coinbase Gain Indomitable Positions
The revenue of the cryptocurrency exchanges is about to explode all over the world so it looks like Wall Street is missing its shot to stop companies like Coinbase from getting ahead and becoming the new beacons of the world’s financial system.
The market analyst firm Sanford C. Bernstein & Co. has recently written a new report called “Crypto Trading – The Next Big Thing Is Here”. In this article, the company states that the fees that the exchanges are charging could make a market of $4 billion USD in 2018 even when you consider the decline in trade volume.
A Big Chance For Wall Street
Because of this, if the trading revenue of the company actually hits this margin, it will be a 120 percent increase from 2017, when the market combined a total of $1.8 billion USD. This was 8 percent of the fees generated by traditional stock exchanges around the world.
According to the article, this could present a great opportunity for Wall Street investors as they could invest in a rapidly-maturing asset class: cryptocurrency exchanges. There are many opportunities for traditional firms as many exchanges and crypto assets need to build for their current institutional demands. Investing in this growing market is certainly a good idea, then.
In fact, you can easily see that the lack of custodian services is one of the main reasons why more institutional investors are not in this market right now.
Companies Begin To Take Crucial Steps To Enter The Market
However, some firms like the Intercontinental Exchange (ICE), which owns the New York Stock Exchange (NYSE) have already started to take some important steps to establish a strong presence in the cryptocurrency market right now, even as the largest part of the cryptocurrency market starts to feel hesitant to jump in this market amidst the crypto bear market.
As the windows are closing fast and some companies are already taking dominant positions in the market, the chance for Wall Street is closing its doors. If the companies want to have a good position in the market, they should do it soon.
The main danger, according to the article written by Bernstein, is that Coinbase, which already has 50 percent of the trading volume between brokerage and professional exchange platforms, could achieve a position in which it would be impossible to compete with it and not even the largest Wall Street players could do anything about it.