- Coinbase becomes first cryptocurrency firm to join S&P 500.
- COIN stock surges 8% following its S&P 500 index inclusion.
- Coinbase’s acquisition of Deribit signals major market growth.
Coinbase has become the first cryptocurrency firm to become a member of the S&P 500 index. Coinbase’s COIN stock soared after the announcement of its inclusion on the index to replace Discover Financial, which has been purchased by Capital One. This marks an important moment for both Coinbase and the global cryptocurrency industry.
Coinbase will join the S&P 500 just before trading opens on May 19. The company’s addition to the index gives Coinbase more attention, which in turn attracts both institutional investors and passive funds. The addition of Coinbase to the S&P 500 enables the company to reach more mainstream investors and improve the credibility of digital assets.
COIN stock price reacts to S&P 500 Inclusion
As soon as the announcement was made, Coinbase’s stock jumped. The COIN stock price experienced an 8% increase after the news, with a 17% increase in the last month. However, the stock has dropped 16% year-to-date (YTD) which indicates the cryptocurrency market’s volatility.
This announcement comes after Coinbase’s recent $2.9 billion purchase of Deribit, which stands as the largest merger and acquisition in the crypto industry. Some analysts, such as Bitwise’s CIO Matt Hougan, predict that Coinbase could achieve a trillion dollars in market value in the future.
Coinbase Executives Reacts to Announcement
Coinbase, in a statement, has expressed gratitude to the team behind the historic milestone. The company stated that this milestone indicates the credibility and acceptance of digital assets in mainstream finance.
Coinbase CEO Brian Armstrong hailed the achievement as proof that crypto is not going away. Emilie Choi, the Coinbase COO, reiterated these sentiments and emphasized the importance of Coinbase inclusion in the S&P 500 to attract institutional investors. Moreover, Choi said the milestone was important for Coinbase as well as its staff, customers, and investors.
Coinbase Flashes Hope Despite Q1 Flop
The inclusion of Coinbase in the S&P 500 solidifies its position as a major player in the U.S. market. It will now compete with major tech and financial firms, which shows the increased adoption of digital assets in mainstream finance.
Coinbase’s entry into the S&P 500 comes after a poor performance in the first quarter, as its sales fell below the Wall Street predictions. The company said the decline happened because of the overall flop in cryptocurrency prices, as well as wider economic and geopolitical issues such as tariffs. However, the inclusion in the S&P 500 indicates Coinbase’s potential for long-term success.
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