Coinbase Soars on News of S&P 500 Inclusion

Coinbase (NASDAQ: COIN) surged more than 8% in after-hours trading Monday following news that the crypto exchange will be added to the prestigious S&P 500 index. The inclusion is set to take effect on May 19, replacing Discover Financial, which is being acquired by Capital One.

The S&P 500 index tracks 500 of the largest U.S.-listed companies and is widely used as a benchmark by institutional investors and retirement funds. Coinbase’s addition marks a major milestone for the digital asset sector, signaling deeper mainstream acceptance of crypto-related firms. With a market capitalization nearing $53 billion, Coinbase joins tech giants like Apple, Microsoft, and Amazon in the index and becomes one of the first major crypto-native companies to gain this level of institutional visibility.

The move is expected to significantly boost COIN’s liquidity and demand. Index funds and model portfolios that mirror the S&P 500 will now be required to include Coinbase, increasing its daily trading volume. Bitwise senior investment strategist Juan Leon commented on X, saying, “COIN about to be in every portfolio in America,” noting that the inclusion could trigger a sevenfold surge in trading activity.

Shares of Coinbase jumped to $225 in post-market trading, following a nearly 4% rise during Monday’s regular session. The development reflects growing investor confidence in crypto as traditional finance continues to embrace the sector.

Coinbase’s entry into the S&P 500 reinforces the growing intersection of Wall Street and the crypto economy, highlighting the company’s evolution from a niche exchange to a central player in digital finance. With broader market exposure now guaranteed, Coinbase stands to benefit from increased investor interest and institutional support.