- Cryptocurrency exchanges are making money hand-over-fist this year, despite a bear market that’s gripped the market for digital currencies.
- Crypto revenue could more than double to as much as $US4 billion in 2018, according to a new report.
Bitcoin has been stuck in the doldrums for much of 2018, but that doesn’t mean every market participant is heading to the poor house.
In fact, a recent Bloomberg News report found that crypto exchanges are set to rake in twice as much money as last year even though bitcoin is down a whopping 51%, according to Markets Insider data. In total, the market for digital currencies has shed over $US500 billion since it topped $US800 billion in January.
Exchanges, which notably experienced outages and hacks as bitcoin soared to $US20,000 at the end of 2017, make money by facilitating the matching of buyers and sellers.
Citing data from Sanford C. Bernstein & Co, Bloomberg reported that crypto exchange revenues could more than double to as much as $US4 billion in 2018. In 2017, they brought in about $US1.8 billion. Only global cash equities businesses on Wall Street beat crypto trading revenues.
San Francisco-based Coinbase is enjoying 50% of these revenues, Bernstein found.
Offering these services to large institutions – from face-to-face meetings to block trades – is one way the market could mature, experts says.
Kiran Nagaraj, KPMG’s leader of cryptocurrency services, said larger investors need to be supported on crypto-specific issues such as managing crypto forks – when a crypto splits into two – for them to enter the market in a serious way. Big investors, Nagaraj says, don’t want to be concerned with the technicals.
- 2 of the largest crypto exchanges have snagged veteran Wall Streeters as they build out businesses to lure in billion dollar investors
- NYSE owners’ plan for a new crypto ecosystem has one detail that traders have been crying for -and it might reel in Wall Street
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