What Happened?
The largest cryptocurrency exchange in the United States, Coinbase, will officially be included in the S&P 500 Index after the market closes on May 19. Following this announcement, Coinbase’s after-hours stock price immediately saw a significant increase, reflecting the market’s recognition of its importance. The successful entry of Coinbase into the S&P 500 is viewed as a significant milestone in the development of the digital asset and cryptocurrency industry. Experts and industry insiders generally believe this is a strong signal that the cryptocurrency-related business, once considered a fringe area, is accelerating its acceptance and recognition within traditional mainstream financial markets and is gradually integrating with the existing financial system. This not only enhances Coinbase’s position as a company but also brings broader attention and legitimacy to the entire crypto asset sector.
Is the S&P 500 Embracing Cryptocurrency?
The largest cryptocurrency exchange in the United States, Coinbase, is set to be included in the S&P 500 Index, marking an important milestone for the digital asset industry on its path to the mainstream financial market. The S&P Dow Jones Indices announced that Coinbase will replace Discover Financial Services (DFS) in the index before the market opens on May 19. Following this news, Coinbase’s after-hours stock price surged by 13%, indicating a positive market reaction.
Congratulations @Brian_Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for Bitcoin. — Michael Saylor (@saylor) May 12, 2025
The S&P 500 Index tracks the performance of the 500 largest publicly traded companies in the United States and serves as a broad indicator of the overall state of the U.S. stock market. Companies must have a substantial market capitalization and meet standards for profitability, liquidity, and float to be included. Currently, Coinbase’s market capitalization has surged to approximately $53 billion, meeting the relevant criteria. Coinbase’s impending inclusion in the S&P 500 is a significant signal that, as the largest cryptocurrency exchange in the U.S., its scale and stability have received high recognition from traditional financial markets, allowing it to stand alongside other top large companies in the U.S. This is not only a major milestone for Coinbase itself but also symbolizes the accelerated integration of the cryptocurrency industry into the mainstream financial system, helping to enhance the visibility and legitimacy of the entire digital asset sector and potentially attract more traditional capital into related stocks through index-tracking funds.
Coinbase just became the first and only crypto company to join the S&P 500.
This milestone represents what the true believers, from retail investors to institutional investors to our employees and partners, knew all along.
Crypto is here to stay. https://t.co/MnMRCX8pMg — Brian Armstrong (@brian_armstrong) May 12, 2025
Coinbase Chief Financial Officer Alesia Haas stated that this inclusion is an “important milestone” for Coinbase and the entire industry, reflecting the development of the company and the industry while foreshadowing the future direction of the world. The inclusion of Coinbase in the S&P 500 Index has also been welcomed by cryptocurrency supporters. Mizuho senior payments analyst Dan Dolev described it as a “sign of the times,” symbolizing that cryptocurrency-related stocks are being accepted by the mainstream market. David Schassler, head of multi-asset solutions at investment management firm VanEck, also pointed out that this is a “strong signal indicating that digital assets are steadily moving towards financial mainstream,” reflecting the broad transformation in how traditional markets are beginning to recognize and integrate cryptocurrency infrastructure.
Crypto Companies Officially Entering the Mainstream
Nearly four years ago, Coinbase became the first cryptocurrency company to go public on a major U.S. exchange. Despite experiencing significant volatility due to the FTX bankruptcy event during this time, Coinbase’s stock price has surged approximately 260% over the past two years. However, this year, its stock price has fallen nearly 17%, contrasting with the rise of Bitcoin. In its recent financial report, Coinbase’s first-quarter revenue increased by about 24% compared to the same period last year but decreased by about 10% compared to the previous quarter; net profit plummeted by 94%, down to $66 million. Nevertheless, the current stance of the U.S. government towards the digital asset industry appears to be relatively friendly, which may create a favorable environment for the development of cryptocurrency companies like Coinbase.
In addition to Coinbase, other companies holding significant amounts of Bitcoin in the S&P 500 Index include Tesla and Block. Another potential candidate, MicroStrategy, was not included due to failing to meet the profitability criteria required to maintain inclusion over the past year and the recent quarter.
References: Bloomberg, Cointelegraph