Coinbase Global Inc. (NASDAQ: COIN) is officially joining the S&P 500 starting May 19. It will replace Discover Financial Services (NYSE: DFS), which is being acquired by Capital One Financial (NYSE: COF), an existing member of the index.
Coinbase Global Inc (NASDAQ:COIN) is officially joining the Standard & Poor's 500 on Monday, May 15. It will be replacing (NYSE:DFS), which is being acquired by Capital One Financial (NYSE:COF), an existing member of the index.
This is a big move for Coinbase and an even bigger signal for Bitcoin. For a crypto company to be included in one of the most-followed indexes in the U.S. shows just how far this industry has come. It's not just hype anymore - it's becoming a real part of the traditional financial system.
"Thank you to everyone who made it possible for a crypto company to join the S&P 500 for the 1st time in history," Coinbase announced on X.
To get into the S&P 500, a company needs to meet a few strict requirements. They need a market cap of at least $18 billion, have most of their shares held by the public, be profitable over the last four quarters, and be listed on a U.S. exchange. Coinbase checks all of those boxes, with a market cap above $40 billion and solid recent earnings.
Once Coinbase is added, every fund that tracks the S&P 500 will need to include it in their portfolios. That means more demand for the stock, which could push the price up in the short term. But even more importantly, it brings more exposure and credibility to the entire crypto space.
"Congratulations Brian Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for #Bitcoin," Strategy Executive Chairman Michael Saylor stated.
Now, let's talk about Bitcoin. Coinbase is one of the main platforms people use to buy and sell BTC. Having it in the S&P 500 makes Bitcoin exposure more accessible to traditional investors. It also helps reduce the perception that Bitcoin and crypto are some risky gamble.
And the numbers speak for themselves. Over the past 14 years, Bitcoin has outperformed the S&P 500 and gold by a huge margin. Since 2010, Bitcoin has surged a staggering 7,200,000%, compared to the S&P 500's 306% and gold's 116%. Even when looking at shorter timeframes, Bitcoin consistently beats both. For instance, in the past year, Bitcoin is up 27%, while gold is up 37%, and the S&P 500 is only up 5%. In the last five years, Bitcoin has gained 1,138%, far surpassing gold's 85% and the S&P 500's 92%.
As the saying goes… "First they ignore you.Then they laugh at you.Then they fight you.Then they add you to the S&P 500."…or something like that.
