US-based crypto exchange Coinbase will officially join the S&P 500 index before trading opens on May 19, 2025. The development unfolded after S&P Dow Jones Indices recently announced the inclusion.
The S&P 500, also known as the Standard & Poor’s 500, is a stock market index tracking the performance of 500 leading companies listed on stock exchanges in the United States. It is a widely followed equity index representing about 80% of the total market capitalization of U.S. public companies. As of last month, its total market cap is over $49.5 trillion.
Coinbase Joins S&P 500
To qualify for S&P 500 inclusion, companies must have a minimum free-float market capitalization of at least $18 billion. It must also be listed on a U.S. exchange and demonstrate sustained profitability during the most recent quarter. Nonetheless, the firm must also have cumulated positive profits over the prior four quarters.
Needless to say, Coinbase has grown into one of the world’s largest crypto platforms, serving over 100 million users across more than 100 countries. Having passed the required benchmarks, the crypto exchange will replace Discover Financial Services. Interestingly, the replacement comes after Capital One acquired Discover via a $35.3 billion deal.
Coinbase’s S&P 500 addition requires index-tracking funds to purchase shares automatically. The inclusion also allows retirement-account investors to gain direct exposure to a crypto company via their 401(k) plans. Notably, the development is a first in the index’s nearly seven-decade history.
S&P 500 Inclusion Fuels Reactions
Coinbase COO Emilie Choi thanked customers, employees, and investors via X (formerly Twitter). She tweeted that entry into the S&P 500 represents a milestone for the firm and the crypto industry. Coinbase’s X account added some humor, adapting the famous Mahatma Gandhi quote style.
As the saying goes…
“First they ignore you.
Then they laugh at you.
Then they fight you.
Then they add you to the S&P 500.”…or something like that.
— Coinbase 🛡️ (@coinbase) May 12, 2025
Following the announcement, Coinbase shares surged over 9% in after‐hours trading and closed up nearly 4% in regular trading. However, Coinbase (COIN) remains down roughly 17% year‐to‐date, primarily due to macroeconomic uncertainty, including the recent trade war.
Meanwhile, the firm launched the Coinbase Bitcoin Yield Fund (CBYF) earlier this month. The fund is a bitcoin-denominated investment vehicle designed exclusively for non-U.S. institutional investors. The initiative aims to return 4% to 8% in BTC by leveraging an arbitrage strategy that exploits price discrepancies between spot and futures markets.
