Coinbase will be added to the S&P 500 index, becoming the first U.S.-listed pure-play crypto company to join the benchmark index.
Background
- Coinbase (NASDAQ: COIN), the largest publicly traded cryptocurrency exchange in the U.S., will officially be included in the S&P 500 before markets open on May 19, replacing Discover Financial Services.
- The company went public in April 2021 via a direct listing and currently holds a market capitalization of around $53 billion, peaking at $85 billion at debut.
- The S&P 500 inclusion comes on the heels of sustained profitability, a key eligibility requirement for the index. COIN shares surged 8% in after-hours trading following the announcement.
- Coinbase reported $527 million in adjusted net income for Q1 2025 and $2 billion in revenue, though down from $2.3 billion in the previous quarter.
- The listing follows positive forecasts by analysts like Oppenheimer’s Owen Lau, who earlier raised his price target to $388 citing continued growth.
Why should you pay attention?
- Coinbase becomes the first dedicated crypto firm to gain entry into the prestigious S&P 500 index, signaling broader Wall Street acceptance of the digital asset industry.
- Inclusion in the index can trigger inflows from institutional investors and ETFs that track the S&P 500, potentially driving further interest in COIN stock.
- The move comes amid a broader shift in U.S. regulatory tone under the Trump administration, leading to increased optimism across the crypto sector.
Who said what?
- “Coinbase now joins the ranks of America’s corporate elite,” CNBC reported, citing the official index adjustment.
- Oppenheimer analyst Owen Lau previously predicted the inclusion, stating Coinbase’s growing earnings consistency was a major factor: “The trajectory is clear—Coinbase is maturing into a mainstream financial entity.”
- Coinbase CEO Brian Armstrong has previously emphasized the firm’s strategy to diversify revenue beyond spot trading, recently exemplified by its $2.9 billion acquisition of Deribit to scale its crypto derivatives business.
Zooming out
- Coinbase's addition to the S&P 500 highlights the growing integration of crypto into the traditional financial system, with firms like PayPal, Visa, and Block already offering crypto-related services.
- However, Coinbase’s spot in the index also highlights its unique standing, as no other crypto-native company, including heavy Bitcoin holders like MicroStrategy, has met the inclusion criteria until now.
- With the U.S. regulatory environment warming to digital assets and other firms like Kraken and Gemini eyeing public listings, Coinbase’s milestone may open the door for further crypto representation in traditional financial benchmarks.
