Author: Fairy, ChainCatcher
Editor: TB, ChainCatcher
Four years ago, crypto companies were still struggling to list on Nasdaq; now, Coinbase has reached the high ground of global capital markets. This platform, which has long faced regulatory doubts and media controversies, will officially become a member of the globally influential S&P 500 index.
Behind this lies massive passive fund demand, accelerating institutional entry, and a significant symbolic leap. A new era has quietly begun.
13 Years of Ups and Downs to Reach Mainstream Capital Markets
From founding to being selected for the S&P 500, Coinbase took 13 years. On this day in 2012 (May 13), Coinbase was officially established, when Bitcoin was still just an experimental currency among tech enthusiasts. Nine years later, Coinbase went public on Nasdaq on April 14, 2021, with the stock ticker COIN, reaching a peak price of $429.54 and a market value of up to $85 billion, marking a milestone in the crypto industry.
Coinbase's stock performance is deeply tied to the crypto market's bull and bear cycles. In 2022, amid a significant market pullback, COIN's stock price dropped to $33, falling by 86% for the year. It wasn't until October 2023 that the stock price began to recover as market sentiment gradually improved.
Now, at the 13th anniversary of the company's founding, Coinbase is experiencing another historic moment: replacing Discover Financial Services to become the first crypto enterprise in the S&P 500. After the news was announced, COIN's stock price surged 8% intraday, currently trading around $207, with a total market value of $52.78 billion. The era of institutionalization of crypto finance is quietly taking shape.
Image source: Google Finance
Profitability and Market Value: Coinbase Meets the Hardcore Standards
The S&P 500 index components are selected by the index committee, with adjustments made annually in March, June, September, and December. According to the latest standards from March this year, candidate companies must have a market cap of at least $25 billion, good liquidity, and a high percentage of free-float shares. Additionally, the company must have been profitable in the most recent quarter and have a cumulative net profit over the past four quarters.
As early as February this year, Oppenheimer analyst Owen Lau predicted that Coinbase could be included in the S&P 500, maintaining a "buy" rating and raising the target price to $388.
According to the latest financial report disclosed on May 9, Coinbase recorded $2 billion in revenue in the first quarter of 2025, slightly lower than the previous quarter's $2.3 billion; net profit was $66 million, though significantly down from $1.2 billion in the same period last year, it still maintained positive profitability. More critically, Coinbase has been profitable for five consecutive months, with free-float shares at 95%, meeting all indicators for S&P 500 inclusion.
Coinbase Financial Information
Besides Coinbase, the S&P 500 already includes several companies involved in crypto business, such as Block, PayPal, and Visa. It's worth noting that Strategy (formerly MicroStrategy), which holds a large amount of Bitcoin, was included in the Nasdaq 100 index last December. Some analysts believe that although the company has not fully met profitability standards, with the implementation of new accounting principles in January 2025, Strategy may be eligible for inclusion in the S&P 500 during the June quarterly adjustment.
The Significance Behind S&P Inclusion
Coinbase's successful entry into the S&P 500 is not only a major breakthrough in the company's history but could also trigger a series of far-reaching changes in the cryptocurrency industry. From market impact to industry trends and symbolic significance, Coinbase's inclusion provides a new perspective for the industry.
Passive Fund Inflow and Trading Volume Surge
From a market impact perspective, Coinbase's inclusion could significantly boost its stock trading volume. Bitwise's senior investment strategist Juan Leon points out that entering the S&P 500 could increase COIN's daily trading volume sevenfold.
Juan Leon uses Discover Financial as an example, which currently has a weight of about 0.10% in the S&P 500. Considering that about $13.5 trillion in assets track the S&P 500, the corresponding passive allocation demand could reach $13.5 billion. COIN's average daily trading volume over the past three months was only $1.85 billion, meaning a large amount of funds will passively flow into the stock.
Accelerating Crypto Industry IPO Boom
Companies like Circle, eToro, Kraken, and others who previously planned IPOs are pushing forward. Currently, Circle, eToro, Bgin Blockchain, Chia Network, Gemini, Ionic Digital and others have submitted S-1/F-1 files, with a high likelihood of listing in Q2 2025; BitGo, Kraken, Bullish Global, ConsenSys, Figure and others have indicated IPO plans or are in advisory negotiations, with potential listing in 2025-2026.
Simultaneously, Hong Kong crypto investment company Animoca Brands is also planning to go public in the US, with a valuation of nearly $6 billion in 2022, currently holding $300 million in cash and stablecoins, and $538 million in digital assets.
Coinbase's success provides strong market confidence for these enterprises, and the IPO boom may heat up again.
(Related reading: US Crypto Enterprises Enter Explosive Era: M&A, IPO, and Token Boom)
A Milestone for Crypto Entering the Mainstream
The S&P 500 inclusion criteria not only focus on hard indicators like market value, profitability, and liquidity but also emphasize industry representation. Included companies must represent important industries in the US economy and undergo comprehensive evaluation by the index committee.
Coinbase's successful inclusion reflects the growing importance of the crypto industry in the US economic landscape. Dan Dolev, senior payment analyst at Mizuho, commented: "This is a sign of the times, meaning crypto stock has been accepted by mainstream financial markets."
Coinbase's inclusion in the S&P 500 marks a turning point in an era. It symbolizes the crypto industry's transition from experimental finance to institutionally recognized finance. The subsequent capital restructuring, IPO boom, and regulatory dialogue will become important components of this wave of transformation.
As more "crypto native forces" knock on Wall Street's door, a new chapter in financial history is being written.
