Key Highlights:
- Coinbase will join the S&P 500 index starting May 19, replacing Discover Financial, as announced by S&P Dow Jones Indices on Monday.
- This news drove a significant increase in the stock price of Coinbase (COIN), surging over 8% in after-hours trading.
- With a market capitalization nearing $53 billion, Coinbase is currently listed on the Nasdaq exchange.
Crypto trading platform Coinbase saw its stocks rise by more than 8% after the announcement regarding its addition to the S&P 500 index, effective from May 19. According to an S&P press release, the company will replace Discover Financial, which is being acquired by Capital One.
The S&P 500 tracks 500 of America’s largest public companies across various sectors, including technology, healthcare, and finance. Major players in the index consist of firms like Apple, Microsoft, Amazon, and Google. The addition of Coinbase marks a noteworthy achievement for the digital asset sector, offering millions of regular investors and managed portfolios a stake in a cryptocurrency-oriented company.
Quote from Juan Leon, senior investment strategist at Bitwise:
“COIN about to be in every portfolio in America. The S&P 500 inclusion is going to force 7x the daily trading volume into [the] stock.”
Translation: COIN is likely to be included in every investment portfolio across the United States, and its inclusion in the S&P 500 will significantly increase its trading volume.
In post-market trading, Coinbase shares reached as high as $225, reflecting an 8.6% increase following the announcement, adding to the nearly 4% gain witnessed during Monday’s trading session.
