Coinbase Will Make History by Becoming the First Cryptocurrency Company to Join the S&P 500 Index

Crypto exchange Coinbase is set to become the first cryptocurrency company to join the S&P 500 index.

The major US-based crypto exchange will be added to the prestigious stock market index on May 19, 2025, replacing Discover Financial Services (NYSE: DFS).

The move marks a watershed moment for the digital asset industry as it comes amid a broader shift in how traditional finance views the cryptocurrency sector.

Coinbase, which was founded in 2012 and went public via a direct listing on Nasdaq in 2021, has become the largest cryptocurrency exchange in the US.

Coinbase CEO Brian Armstrong reacted to the news on social media.

“Coinbase will be joining the S&P 500 on May 19th. It's the last day for index funds to make the change. I'm told it's still up in the air but it seems likely to happen. Good news if you're a $COIN shareholder (they'll need to buy a lot of shares). Also thinking of @Barry_Stiell and the team at @SPG_Global in making the final decision.”

Those who follow the great civilizations know that civilizations rise and fall in a series of stages. 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.

What This Means for Investors

The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the U.S. It’s a broad measure of the overall U.S. stock market. The S&P 500 has an aggregate market cap of $49.8 trillion as of 31 March.

Coinbase’s inclusion in the index is likely to increase demand for its stock. This is because index funds and exchange-traded funds that track the S&P 500 must buy COIN shares to mirror the index.

The market responded positively to the news. COIN shares rose 8.8% to $225.4 in extended hours on Friday. This brings the company's market cap to $52.8 billion.

Announcing the addition of Coinbase to the S&P 500, S&P Global said on Friday that Capital One Financial Corp (NYSE: COF) will be merging with Discover Financial Services.

As a result, Discover will be spinning out of the S&P 500 and Capital One will no longer be part of the index.

The changes will take place on May 12.

Coinbase will be joining the index on May 19, the last day for index funds to make the changes ahead of the third quarter.

Coinbase Reaches Major Milestone

Commenting on the development, Alesia Haas, Chief Financial Officer at Coinbase, said: “We are thrilled to share that Coinbase will be joining the S&P 500 on May 19th. This is a major milestone for both Coinbase and the broader crypto industry.”

She added: “Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading.”

Coinbase will be the first cryptocurrency company to be included in the S&P 500. The move comes as the cryptocurrency industry continues to grow in popularity and mainstream adoption.

Coinbase is one of the largest cryptocurrency exchanges in the world. It provides a platform for retail and institutional investors to buy, sell, and trade cryptocurrencies.

The exchange went public in 2021 via a direct listing on Nasdaq.

Coinbase is also a major player in the decentralized finance (DeFi) revolution. The company is developing a suite of DeFi products and services.

Coinbase is a company to watch in 2023 and beyond as it navigates the evolving cryptocurrency landscape.

Joining the Financial Establishment

To qualify for the S&P 500, companies must meet several requirements. They must be:

Trading on a major U.S. stock exchange like Nasdaq or the New York Stock Exchange.

Generating at least half of their revenues in the U.S.

Having a market cap above $18 billion.

Companies must also demonstrate profitability in the last calendar year and the most recent quarter. This requirement has kept other crypto-related companies like Strategy (NYSE:MSTR) out of the index despite their size.

Coinbase joins Tesla and Block Inc. as large corporate Bitcoin holders currently in the index fund. The S&P 500 is a market-cap-weighted index, giving more weight to larger firms such as Microsoft, Apple, and Nvidia. As a newer entrant, Coinbase will likely be weighted between 0.01%