Coinbase is set to make history as the first cryptocurrency company to be included in the S&P 500 index, replacing Discover Financial Services, which is being acquired by Capital One. The news sparked a 10% surge in Coinbase’s shares during pre-market trading on Tuesday, as the move positions the firm for increased exposure through index-tracking funds.
The milestone highlights the growing integration of crypto firms into mainstream financial markets. Coinbase, which went public in 2021, has experienced considerable volatility in line with the broader crypto sector and is currently trading below its yearly highs. Still, its inclusion in the S&P 500 marks a significant endorsement of its market stature.
While Coinbase stands to benefit from the Trump administration’s more crypto-friendly stance, it recently reported a decline in profits for Q1, reflecting persistent challenges in the digital asset industry. However, the company remains aggressive in its growth strategy, having just sealed a $2.9 billion deal to acquire crypto derivatives exchange Deribit.
The inclusion in the S&P 500 is expected to boost investor confidence and further cement Coinbase’s role as a central player in the global crypto economy.