Sanford C. Bernstein: 'Crypto Trading Revenue May Double'

Amid a cryptocurrency market downturn, institutional investor interest continues to take rise.

Reported Aug. 17, investment firm Sanford C. Bernstein has predicted that crypto exchange revenue will double by the end of 2018.Wall Street Catching Up to Crypto.

New York-based investment firm Sanford C. Bernstein & Co. analysts have forecasted that cryptocurrency exchange revenue will double to nearly $4 billion this year, reports Bloomberg.

Led by Christian Bolu, Bernstein analysts estimated that cryptocurrency trading generated $1.8 billion in transaction fees for the largest exchanges in 2017.

Bernstein analysts consider San Francisco-based startup Coinbase a current market leader, responsible for almost 50 percent of all cryptocurrency trading transaction revenue.

According to Bernstein, Coinbase will maintain an "Unassailable competitive position" unless other major investment firms join the sector.

In early May, Goldman Sachs confirmed plans to launch a Bitcoin futures trading desk to meet rising client demand.

Coinbase launched its own custodial service for institutional investors, called Coinbase Custody, in early July.

On June 26, Cboe futures exchange submitted a Bitcoin ETF application to the U.S. Securities and Exchange Commission.

In the onset of regulated digital asset derivatives and security token markets, it's evident that a growing number of major investment firms are preparing institutional solutions for the developing digital economy.