ARK Invest CEO Cathie Wood Applauded Coinbase Global Inc. COIN on Its Inclusion in the S&P 500 Index

input: ARK Invest CEO Cathie Wood applauded Coinbase Global Inc. COIN on its inclusion in the S&P 500 index, marking the first cryptocurrency company to achieve this milestone.

Cathie Wood, the renowned CEO of ARK Invest, took to X, formerly Twitter, to express her congratulations to both Coinbase CEO Brian Armstrong and the company itself for its inclusion in the S&P 500 index.

This marks a significant milestone as Coinbase becomes the first cryptocurrency company to be part of the major market index, which is usually recognized by index-tracking funds.

“Active managers like ARK rely on fundamental research to select stocks. Index-sensitive managers will be compelled to consider COIN now.”

Coinbase Inclusion Averts 'Massive Opportunity Cost' For Index Funds

The S&P 500 addition represents a watershed moment for cryptocurrency legitimacy in traditional finance, potentially forcing index fund managers to allocate capital to the digital asset space.

“We're included in the S&P 500. Crypto is here to stay. Despite the 2022 crypto winter, we've pulled through and come out stronger. As the industry continues to grow, we're excited for what the next chapter holds,” Armstrong said in a statement on X.

Coinbase's inclusion in the S&P 500 comes at a pivotal time for the cryptocurrency industry, which is navigating a period of heightened regulatory scrutiny and market volatility.

The move by the index provider to integrate Coinbase could have massive implications for the broader investment landscape.

According to recent data from Bank of America, some 70% of U.S. stock mutual funds and pension funds are benchmarked to the S&P 500.

If these funds fail to invest in Coinbase, they might face an “opportunity cost” of about $10 billion, considering Coinbase's current market capitalization.

If, on the other hand, index-tracking funds decide to allocate capital to crypto through Coinbase, it could open up an entirely new asset class to a vast segment of the investment community.