Cryptocurrency exchange Coinbase will be added to the S&P 500 index before markets open on May 19, replacing Discover Financial Services (DFS) following its merger with Capital One. The announcement sparked renewed investor interest, sending Coinbase shares up 8% to close at $207.22 on Monday.
The inclusion marks a major milestone for Coinbase, which went public via direct listing on the Nasdaq in 2021. Since its debut with a market cap of $52.78 billion, the company has increasingly bridged the gap between crypto and traditional finance—especially as institutional investors grow more active in the digital asset space.
While its stock remains well below its 2021 peak of over $357, Coinbase’s addition to the benchmark index is seen as a sign of maturity for both the company and the broader crypto industry.
The S&P 500, which includes many of the U.S.’s largest and most influential companies, is often viewed as a barometer for the economy and a benchmark for institutional portfolios. In recent years, tech-related firms such as Dell, Palantir, Super Micro Computer, and CrowdStrike have also joined the index.
Meeting the Bar for Inclusion
To be eligible for the S&P 500, a company must meet strict criteria, including reporting a profit in the most recent quarter and generating cumulative profits over the past four quarters.
According to CNBC, Coinbase has met these benchmarks. The company posted a $65.6 million profit last quarter—down sharply from $1.18 billion a year earlier—but reported a 24% increase in revenue year-over-year, reaching $2.03 billion.
As Coinbase continues to evolve alongside growing institutional interest in crypto, its presence in the S&P 500 may further legitimize the digital asset sector in the eyes of mainstream investors.
Featured image from: bankrate.com