Coinbase Set to Join S&P 500: Crypto Hits Wall Street Milestone

Crypto exchange Coinbase is poised to enter the S&P 500, marking a major milestone for digital assets in traditional finance.

Coinbase Global Inc. will officially be added to the S&P 500 index ahead of the trading day on May 19, replacing Discover Financial Services. The shift comes as Discover finalizes its acquisition deal with Capital One Financial, according to an S&P Dow Jones Indices announcement on Monday.

Following the news, Coinbase shares jumped 8% in after-hours trading, reflecting renewed investor confidence in the platform’s growing institutional relevance.

Since debuting on the public market via direct listing in 2021, Coinbase has carved out a growing role in the U.S. financial system. The crypto firm has capitalized on rising institutional adoption, especially with the recent greenlighting of spot bitcoin ETFs by regulators.

Bitcoin itself surged past the $100,000 threshold last week, inching close to its all-time high set in January, further fueling optimism in the crypto sector.

Despite its volatility, Coinbase has maintained a multi-billion-dollar valuation. Shares closed Monday at $207.22, reflecting a market capitalization of approximately $53 billion. That’s still significantly below its late 2021 peak of $357 per share.

Inclusion in the S&P 500 typically boosts stock performance, as index-tracking funds and ETFs are forced to incorporate the new entrant into their holdings. The S&P 500, dominated by tech giants due to their immense market capitalizations, has been increasingly welcoming tech-driven firms. In the past year, new additions have included Dell Technologies, Palantir, CrowdStrike, and Super Micro Computer.

To qualify for the index, companies must show both recent profitability and cumulative profits across the past four quarters. Coinbase recently reported a net income of $65.6 million for Q1 2025, or $0.24 per share, compared to $4.40 per share a year earlier. Quarterly revenue rose 24% year-over-year to $2.03 billion.

In another headline move last week, Coinbase announced it would acquire Dubai-based Deribit for $2.9 billion—marking the crypto industry's largest deal to date. The acquisition is expected to help Coinbase expand beyond its U.S. base and strengthen its position in the global crypto derivatives market.

Despite its broader gains, Coinbase stock has declined 17% year-to-date, trailing behind bitcoin’s 10% rise over the same period.