The inclusion of crypto exchange Coinbase in the S&P 500 index, scheduled for May 19, will result in its indirect addition to millions of investment portfolios.
Coinbase Global (COIN), a cryptocurrency exchange, is scheduled to be added to the Standard and Poor’s 500 (S&P 500) on May 19, marking it as the first and currently the only crypto-focused company to be included in the index.
It was announced by S&P Global on May 12 that the crypto exchange will be taking the place of Discover Financial Services (DFS), which was recently acquired by Capital One Financial Corp (COF).
The S&P 500 is recognized as a stock market index used to monitor the performance of 500 of the largest publicly traded companies in the United States, offering a comprehensive representation of the overall U.S. stock market.
An increase in demand for its stock is expected due to the S&P 500 inclusion, as COIN shares will be required to be purchased by index funds and exchange-traded funds that aim to replicate the performance of the S&P 500.
As of March 31, an aggregate market capitalization of $49.8 trillion was tracked by the S&P 500. Being a market-cap-weighted index, greater influence is assigned to larger companies such as Microsoft, Apple, and Nvidia. Coinbase, which is expected to be positioned among the lower 400 firms, will likely be assigned a weighting between 0.01% and 0.2% within the overall index.
Coinbase Stock Surges Following Announcement
An immediate increase of 8.8% to $225.4 in COIN shares was recorded in after-hours trading following the announcement, according to data from Google Finance. Additionally, the company concluded the March 12 trading session with a 4% gain, resulting in a market capitalization of $52.8 billion.
The inclusion was described as a “significant milestone” for both Coinbase and the wider cryptocurrency sector by Coinbase Chief Financial Officer Alesia Haas.
Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading.
The crypto exchange has been added to the index fund alongside Tesla (TSLA) and Block Inc. (SQ), which are recognized as major corporate holders of Bitcoin.
Strategy (MSTR), a firm known for accumulating Bitcoin, was also considered a potential candidate for the S&P 500 last year. However, eligibility for inclusion requires that companies demonstrate profitability in both the previous calendar year and the most recent quarter.
A net loss of $4.2 billion for the first quarter of 2025 was reported by Strategy on May 1, indicating that its inclusion in the index is unlikely in the near future.
Inclusion in the S&P 500 also mandates that companies be listed on a major U.S. stock exchange, such as the Nasdaq or New York Stock Exchange, generate no less than half of their revenue within the United States, and maintain a market capitalization exceeding $18 billion. These additional criteria have been met by Strategy.
