Investors Jumped on Shares of Coinbase Global (COIN) After the Monday Night News That the Crypto Exchange Will Join the S&P 500 Next Week.

Coinbase stock was up 25% in afternoon trading. S&P Dow Jones Indices on Monday said it would replace Discover Financial Services (DFS), which is moving toward a merger with Capital One Financial (COF), in the benchmark index before trading opens Monday.

Investors were swarming shares of Coinbase Global (COIN) on Tuesday following the Monday night news that the crypto exchange is joining the Standard & Poor's 500 next week.

Coinbase stock was up a whopping 25% in afternoon trade. S&P Dow Jones Indices on Monday evening said it would add Coinbase and drop Discover Financial Services (DFS) from the benchmark index. The changes will be made before the market opens Monday, April 24.

It comes as Capital One Financial (COF) is set to acquire a majority stake in Point in a new all-stock transaction. As part of the transaction, which is expected to close in the fourth quarter, Capital One will contribute its Capital One Venture Network, part of its Capital One Spark program, to Point.

After Tuesday's afternoon surge, Coinbase shares are nearly back to breakeven for the year. The shares are trading at their highest levels since February.

Earlier this week, Oppenheimer analysts set a $293 price target on the shares that is substantially above Visible Alpha’s mean estimate of $266.64.

“We have been predicting this as one of the key catalysts for Coinbase in 2025, and it has finally arrived, ” the analysis, which was written by analysts at Oppenheimer and obtained by Benzinga, said. “We believe the inclusion has huge implications for Coinbase and the crypto industry as a whole.”

Bitcoin (BTC) recently traded just above $104,000, up from Monday’s levels after the index news was announced.