Crypto Exchange Becomes First of Its Kind in the Benchmark Index, Signaling Mainstream Acceptance
Shares of Coinbase Global (COIN) soared nearly 10% in premarket trading on Tuesday after the cryptocurrency exchange secured a historic spot in the S&P 500 index. The move makes Coinbase the first digital asset company to join the prestigious benchmark, marking a pivotal moment for both the company and the broader crypto industry.
Coinbase will officially replace Discover Financial Services in the index before trading opens on May 19. Discover is being acquired by Capital One, prompting the reshuffling of index constituents.
The inclusion not only elevates Coinbase’s profile among institutional investors but also paves the way for a surge in demand from funds that track the S&P 500. These funds will now be required to add Coinbase shares to their portfolios, which could significantly boost the stock’s liquidity and visibility.
Tuesday’s gains put Coinbase on track to reach its highest level in over two months. If the rally holds, the company could see its market capitalization swell by more than $5 billion.
The development comes at a time of rising institutional interest in cryptocurrencies, spurred in part by a friendlier regulatory environment under President Donald Trump. The shift in sentiment is helping move digital assets from the fringes of finance into the mainstream investment world.
Despite a recent dip in quarterly earnings, analysts remain optimistic about Coinbase’s outlook, citing a recovering crypto market and the company’s aggressive expansion strategy. Last week, Coinbase announced a $2.9 billion acquisition of crypto derivatives exchange Deribit, aimed at strengthening its position in the options and futures market.
The company has also been working to grow its institutional client base and extend its footprint beyond U.S. borders, reinforcing its standing as the world’s largest publicly traded crypto exchange.
Still, Coinbase shares have dropped nearly 17% in 2025 as of their last close. But the S&P 500 inclusion could serve as a turning point, both for the stock and for broader perceptions of the cryptocurrency industry.
For investors, Coinbase’s entry into the S&P 500 is more than symbolic—it signals that digital assets are not just here to stay, but are becoming a permanent fixture in the global financial system.
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