Coinbase Climbs Into the S&P 500, Signaling Wall Street's Crypto Embrace
Coinbase Global (COIN) is set to become the first-ever crypto company to join the prestigious S&P 500 index on May 19, a move that cements digital assets deeper into the mainstream financial ecosystem. The crypto exchange will replace Discover Financial Services (DFS), recently acquired by Capital One Financial Corp, according to a May 12 announcement from S&P Global. With this leap, Coinbase will now be indirectly added to millions of investment portfolios worldwide, as index-tracking funds and ETFs that follow the S&P 500 will be required to hold COIN stock to maintain parity with the benchmark.
A Historic Win for Crypto
The S&P 500 tracks the performance of 500 of the largest public companies in the United States and represents nearly $50 trillion in aggregate market capitalization. Coinbase’s inclusion is not only symbolic — it’s a direct validation of the crypto industry’s growth, profitability, and staying power.
COIN shares surged 8.8% in after-hours trading, hitting $225.40, after the news broke. The company had already posted a 4% gain during regular trading, pushing its market cap to $52.8 billion.
Coinbase’s chief financial officer Alesia Haas celebrated the achievement:
A Crypto Giant Among Giants
Coinbase now joins the S&P 500 ranks alongside Tesla and Block Inc., two other crypto-aligned firms with substantial Bitcoin holdings. The move boosts Coinbase’s profile and could attract billions in passive investment capital as index funds adjust their holdings. It’s also worth noting that market-cap-weighted S&P 500 inclusion favors size, and while Coinbase is unlikely to carry significant weight compared to tech juggernauts like Apple or Microsoft, its presence gives crypto a permanent seat at the Wall Street table.
Why Not Strategy?
Many had expected Michael Saylor’s Bitcoin-focused firm Strategy (MSTR) to be next in line. While it meets most of the qualifications, including trading on a major exchange and having an $18B+ market cap, it failed the profitability test. Strategy posted a $4.2 billion loss in Q1 2025, disqualifying it for now.
Congratulations @Brian_Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for Bitcoin.
— Michael Saylor (@saylor) May 12, 2025
Congratulations @Brian_Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for Bitcoin.
— Michael Saylor (@saylor) May 12, 2025
The Bigger Picture
This milestone is far more than a technical reshuffling. It’s a powerful signal that digital assets are no longer fringe. A once-controversial crypto firm is now a cornerstone of the same index that includes America’s most influential corporations.
With Coinbase’s addition, the line between traditional finance and digital finance continues to blur, and that could mean even greater capital inflows and legitimacy for the broader crypto market.
