Coinbase stock soars 24% as it's included in the S&P 500 index

As Coinbase, the largest virtual asset exchange in the U.S., was included in the S&P 500 index for the first time

As Coinbase, the largest virtual asset exchange in the U.S., was included in the S&P 500 index for the first time in a related company, its stock price soared 24% on the 13th (local time).

Coinbase's inclusion in the S&P 500 index came four years and a month after it went public in April 2021.

Online trading platform Robinhood rose nearly 9% when it announced the acquisition of WonderFi, Canada's largest virtual asset exchange.

Analysts say that global digital asset trading platforms are entering the center of the traditional financial market.

Coinbase closed at USD 256.9 on the New York Stock Exchange on the 13th, increasing by 23.97% from the previous day, on the news of its inclusion in the S&P 500 index.

If the period is extended to the last month, the stock price increase rate reaches 45.49%.

The rise in stock prices on this day is due to the incorporation of the S&P 500 index. This is because funds that follow the index have to add newly included stocks to their portfolios.

According to Bernstein of the U.S. Investment Bank (IB), Coinbase is expected to have an inflow of $16 billion in funds due to the effect of incorporating the S&P 500 index.

Bernstein predicts that $9 billion of this is passive fund funds and the remaining $7 billion is active fund funds.

As of the end of the 13th, Coinbase's market capitalization was about $65.43 billion. In other words, according to Bernstein's forecast, funds amounting to 24.45% of the market capitalization will flow in.

"Coinbase is the first and only virtual asset exchange to be incorporated into the S&P 500 index," emphasized Gautam Additionali Bernstein, a researcher who wrote the report.

With a Buy rating, he offered a price target of $310 for Coinbase. It is believed that there is still room for a rise of about 20.67% compared to the recent closing price.

KBW, another IB, also analyzed that it will buy 36 million Coinbase shares only in the S&P 500 Index passive fund. This is equivalent to Coinbase's average daily transaction price of 4 days.

"The inclusion of the index is a significant milestone for Coinbase and the virtual asset industry as a whole," said Coinbase Chief Financial Officer (CFO) Alesia Haas. "It is a sign that traditional financial markets are increasingly accepting the virtual asset ecosystem."

"Coinbase's inclusion in the S&P 500 index is a symbolic event in that digital assets are gradually approaching the center of the existing financial market," said Joel Kruger, a market analyst at LMAX Group.

He then explained, "The digital asset market has recently stopped its surge and started to catch its breath, but the upward trend is still valid," adding, "Global investor sentiment is reviving."

However, Coinbase shares have yet to reach the all-time high of $357 recorded at the end of 2021.

U.S.-based mobile securities and virtual asset trading platform Robinhood is expanding its reach by acquiring Canada's largest virtual asset trading platform.

Robinhood officially announced on the 13th that it will acquire WonderFi, a Canadian virtual asset trading platform, for 250 million Canadian dollars (about 257 billion won) in full cash.

Robinhood shares surged 8.95% to close at $62.57 on the 13th. It has risen 41.75 percent in the past month.

WonderFi operates Bitbuy and Coinsquare, the leading virtual asset platforms approved by the Canadian financial authorities, and manages assets worth C$2.1 billion (about 2.25 trillion won). The company recorded a volume of C$3.57 billion (about 3.7 trillion won) last year, increasing by 28% year-on-year.

With the acquisition, WonderFi will be integrated into Robinhood and existing management will join Robinhood's Canadian division.

Through this acquisition, Robinhood plans to enter the Canadian market in earnest and significantly strengthen its position in the North American digital asset market.

Robinhood is believed to be expanding its digital asset business influence in major global markets beyond the U.S. by continuously pursuing the acquisition of Bitstamp in Europe last year and the acquisition of WonderFi.

"WonderFi is a partner with a strong brand and technology that ranges from beginners to high-end investors," said Robinhood Crypto General Manager Johansson Curverat. "We will provide innovative and user-oriented virtual asset services to Canadian