Key takeaways:
- Coinbase, the largest US cryptocurrency exchange, will be joining the prestigious S&P 500 Index.
- Following the announcement, Coinbase’s stock (COIN) rose by over 8% in after-hours trading, reflecting the optimistic market sentiment.
- The feat marks a milestone for both Coinbase and the broader crypto industry, signaling the growing integration of crypto into the traditional financial system.
- Coinbase posted a Q1 2025 net income of $65.6 million and a 24% year-over-year revenue growth, boosting its eligibility for the S&P 500 with strong profitability and financial performance.
- Coinbase’s inclusion will increase demand for its stock, as S&P 500-tracking funds must include it.
In a major milestone for the cryptocurrency sector, Coinbase Global is set to join the prestigious S&P 500 Index, becoming the first pure crypto company to be included in it. The change, announced on May 12, will take effect on May 19, 2025. This milestone is being viewed as the beginning of a new era, one in which the crypto sector is poised for major growth under President Trump.
Shares surge following the news
As investors reacted to the news, Coinbase shares surged over 8% in after hour trading, according to data from Google Finance. “This is a major milestone for Coinbase and the broader crypto industry,” said Alesia Haas, Coinbase chief financial officer. “Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading.”
Meeting the S&P 500 criteria
To qualify for the S&P 500, companies must meet strict requirements, including having a market capitalization of at least $18 billion, and consistent profitability over the last four quarters.
Coinbase easily met those standards, boasting a market cap of over $40 billion and recently reporting $65.6 million in net income for Q1 2025. Revenue also climbed 24% year-over-year, reaching $2.03 billion for the quarter. It is the largest US-based cryptocurrency exchange. It was founded in 2012 and has been listed on the Nasdaq since 2021.
A turning point for the industry
Coinbase’s inclusion is seen as a sign of growing acceptance of digital assets in the traditional finance industry. While companies like Block, PayPal, and Visa have introduced crypto-related services, Coinbase stands out as the first company in the index built entirely around cryptocurrencies.
This move could also increase demand for Coinbase’s stock, as funds that track the S&P 500 will be required to include it in their portfolios.
This news follows closely behind another significant development for the company—Coinbase’s planned $2.9 billion acquisition of Deribit, a crypto derivatives exchange based in Dubai. This is the largest M&A deal in crypto history and serves as a strategic move to broaden Coinbase’s footprint in global markets.
Coinbase’s addition to the S&P 500 is being hailed as a turning point, signaling the start of a new era for crypto—one where digital assets are no longer seen as fringe innovations but as integral parts of the global financial system.
