Coinbase Global (COIN) will join the Standard and Poor's 500 (S&P500) index fund

The crypto exchange will replace Discover Financial Services (DFS), which was recently acquired by Capital One Financial Corp (COF), S&P Global said on May 12.

Coinbase (COIN) shares rose over 8% on Friday after S&P Global announced that the crypto exchange will join the Standard and Poor's 500 (S&P 500) index fund on May 19.

Coinbase will be replacing financial services company, Discover Financial Services (DFS), which was recently acquired by Capital One Financial Corp (COF), S&P Global said.

The S&P 500 is a major stock market index that follows the performance of 500 of the largest public U.S. companies, providing a broad measure of the overall U.S. equities sector.

The inclusion of Coinbase (COIN) in the S&P 500 should increase demand for its stock because index funds and exchange-traded funds that track the S&P 500 must buy COIN shares to mirror the index.

COIN shares immediately rose 8.8% to $225.4 in after-hours trading following the announcement, Google Finance data shows.

The crypto exchange joins Tesla and Block Inc. as the other large corporate Bitcoin holders currently in the index fund, which tracks an aggregate market cap of more than $49.8 trillion as of March 31.