Coinbase Global, a US crypto company, has entered the S&P 500, the leading US stock market index. This announcement led to a 24% rise in its share price (COIN). Projections now call for up to $16 billion in share purchases by investment funds.
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Coinbase becomes first crypto company in the S&P 500 index
S&P Dow Jones Indices announced Monday evening that Coinbase will replace Discover Financial Services in the index on May 19, 2025. This historic entry transforms the perception of cryptocurrencies by traditional financial markets.
To join the S&P 500, Coinbase had to meet strict criteria,
- be an American company, listed on an American stock exchange,
- have a minimum capitalization of $20.5 billion,
- have at least 50% public shareholding, and
- generate profits for the last quarter and the past year.
With its $65.4 billion capitalization, Coinbase far exceeds these requirements.
Following this news, the stock jumped 24% on Tuesday, reaching $256,90 Its biggest rise since the US presidential election in November 2024. The price continues to rise, now hovering around $257, buoyed by optimistic market sentiment.
The Bernstein’s analysts estimate that this integration will generate around $16 billion in purchases 9 billion from passive funds tracking the index and $7 billion from active managers.
Coinbase dominates 66% of the US crypto exchange market, manages $400 billion in assets and has over 10 million active users. Millions of Americans will now own shares in Coinbase. Coinbase via their 401(k) plans the leading US pension plans whose funds automatically track the S&P 500.
Strategic outlook for the crypto sector
This integration coincides with the administration’s pro-crypto policy Trump. As early as January 23, a presidential decree aimed at strengthening US leadership in digital financial technologies was issued.
Brian Armstrong, Coinbase CEO sees this achievement as proof that “crypto is here to stay”. This inclusion sets a precedent that could make it easier for other crypto companies to gain access to major indices.
Meanwhile, Coinbase is continuing its international expansion with the acquisition of Deribit, a crypto derivatives platform based in Dubai for $2.9 billion.
The crypto ecosystem has undergone a profound transformation over the past three years. Exposure to cryptocurrencies now meets the strictest institutional standards, while banks and institutions are multiplying crypto solutions for their customers. This development bears witness to an irreversible trend: the era of widespread cryptocurrency use is upon us.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
