Wealth management firm Bernstein has tipped prediction markets to boost Coinbase and other platforms this month. The FIFA World Cup, co-hosted by the United States, Canada, and Mexico, is underway, with many fans embracing crypto platforms over traditional ones.
Coinbase is expected to be a mainstream winner for the surge in prediction markets as 104 games are played in the newly expanded World Cup. FIFA is keen for viewership to hit 6 billion, up from 5 billion in Qatar.
This coincides with a boom in crypto prediction markets across jurisdictions. A few months after launching its service, Coinbase topped $100 million in revenue in March, taking a sizable market share.
Companies like Coinbase are well positioned because of their existing base in the crypto community. The firm is the largest digital exchange in the United States by trading volume and has spearheaded regulatory reforms, attracting retail and institutional trading volume.
As prediction markets meet the World Cup, Bernstein says market volume will surge by $5-$10 billion. This excludes an expected $ billion sports betting spike due to the larger tournament. The bulk of the prediction market volume would likely move toward Coinbase, Robinhood and other major players.
 
Robinhood launched Rothera, a United States-regulated exchange for prediction markets. It should be noted that several analysts have forecast that Robinhood’s prediction market revenues will exceed $550 million.
Globally, the sector’s boom has spiked crypto volumes with retail investors steering the ship. In April, volumes exceeded $28 billion, and retail users accounted for 80%. Polymarket is also expected to gain momentum like in past world events.
The platform popularized crypto prediction markets, driving wider adoption. In the run-up to the World Cup, Polymarket announced a partnership with Liga MX, North America’s top-rated football league competition. This seeks to attract wider audiences and provide comprehensive monitoring.
The first match between co-host Mexico and South Africa recorded large numbers in these markets. However, although prediction markets are gaining massive traction, some regulators are cracking down on the service.
On June 10, the US Commodity Futures Trading Commission (CFTC) announced plans to review how event -based contracts are made in the country. The guidelines would also check if contracts are in the public interest. Policy watchers are divided on the extent of regulation.
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