Cryptocurrency exchange Coinbase experienced a notable 8% surge in its stock price following news that it will be added to the S&P 500 stock index. This move will see Coinbase replace...
Cryptocurrency exchange Coinbase experienced a notable 8% surge in its stock price following news that it will be added to the S&P 500 stock index. This move will see Coinbase replace Discover Financial starting May 19, as announced by S&P.
The S&P 500 index tracks the largest publicly traded companies in the U.S. across various sectors, including technology, healthcare, and finance. Major names such as Apple, Microsoft, Amazon, and Google are part of this index. With a market capitalization of nearly $53 billion, Coinbase currently trades on the Nasdaq exchange.
This inclusion is a significant milestone for the digital asset industry, as it will provide millions of average investors and model portfolios with exposure to a crypto-focused company. Juan Leon, senior investment strategist at Bitwise, stated, “COIN about to be in every portfolio in America.” He believes that the S&P 500 inclusion will result in a significant increase in trading volume for the stock.
Following this announcement, Coinbase’s shares soared to $225, marking an 8.6% increase in post-market trading. This jump added to the 4% gain the company already experienced earlier in the day.
*UPDATE (May 12, 21:50 UTC): Includes analyst comment and details on Capital One’s acquisition of Discover Financial.