The Coinbase cryptocurrency exchange (COIN) will officially join the S&P 500 index on May 19, becoming the first and currently only crypto company in this prestigious ranking.
According to the announcement on May 12 from S&P Global, Coinbase will replace Discover Financial Services (DFS), a company recently acquired by Capital One Financial Corp (COF).
The S&P 500 is a stock index tracking the performance of the 500 largest public companies in the United States, reflecting the entire US stock market. Being included in the S&P 500 will significantly increase demand for COIN shares, as index funds are required to hold these shares to ensure their portfolios closely track the index.
As of March 31, the S&P 500 tracks a total market capitalization of approximately $49.8 trillion. This is a market-cap-weighted index, meaning larger companies like Microsoft, Apple, or Nvidia will have a greater influence. Coinbase, positioned in the group of smaller companies, will represent approximately 0.01% to 0.2% of the index.
Immediately after the announcement, COIN stock rose 8.8% in after-hours trading, reaching $225.4, according to data from Google Finance. On March 12, the stock also increased 4%, raising Coinbase's market capitalization to $52.8 billion.
Coinbase's Chief Financial Officer, Alesia Haas, called this a "major milestone" not just for the company but for the entire cryptocurrency industry. She shared: "Being included in this prestigious index reflects Coinbase's development journey and the entire crypto sector - and is a sign that the world is gradually changing."
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The article "Coinbase becomes the first crypto company to join the S&P 500 index" first appeared on CoinMoi.
