is joining the S&P 500!

The stock rallied over 10% on the news 🚀 pic.twitter.com/EixcjrCI84

— Trader Edge (@Pro_Trader_Edge) May 13, 2025

Coinbase Chief Financial Officer Alesia Haas called the inclusion a “major milestone” for both the company and the broader crypto industry. “Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading,” Haas stated.

The S&P 500 tracks the performance of 500 of the largest publicly traded companies in the United States. It represents a broad measure of the overall US stock market and had an aggregate market cap of $49.8 trillion as of March 31.

Coinbase’s entry into the index is expected to increase demand for its stock. Index funds and exchange-traded funds that track the S&P 500 must buy COIN shares to mirror the index composition.

Founded in 2012, Coinbase went public in 2021 through a direct listing on Nasdaq. Since then, it has grown to become the largest US-based cryptocurrency exchange despite facing regulatory challenges and market volatility.

The company marked this achievement with a social media post that referenced a famous quote: “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.”

CEO Brian Armstrong also celebrated the announcement on social media. He simply stated “Crypto is here to stay,” viewing the inclusion as validation of the industry’s permanence in the financial landscape.

To qualify for the S&P 500, companies must meet several requirements. They need to be trading on a major US stock exchange such as the NYSE or Nasdaq and have a market cap above $18 billion.

Companies must also have been profitable in the last calendar year and the most recent quarter. This requirement has kept other crypto-focused companies like MicroStrategy from joining the index despite their size.

The S&P 500 is a market-cap-weighted index, giving more weight to larger firms like Microsoft, Apple, and Nvidia. As a newer addition, Coinbase will likely be among the bottom 400 companies, typically weighted between 0.01% and 0.2% of the overall index.

Coinbase joins other crypto-friendly companies in the index. Tesla and Block Inc. are also large corporate Bitcoin holders currently included in the S&P 500.

The inclusion cements a shift in Wall Street’s perception of the cryptocurrency industry. Legacy financial institutions are increasingly engaging with blockchain infrastructure, digital custody solutions, and tokenized assets.

Congratulations @Brian_Armstrong on $COIN being added to the S&P 500 Index. A major milestone for Coinbase and for Bitcoin.

— Michael Saylor (@saylor) May 12, 2025

This milestone reflects Coinbase’s consistent performance, including improved earnings and renewed institutional interest in digital assets. This has occurred alongside rising Bitcoin prices and growing adoption of blockchain-based financial products.

For investors, Coinbase’s addition to the S&P 500 means the exchange will now be indirectly included in millions of investment portfolios. Many retirement accounts and mutual funds track the S&P 500, giving everyday investors exposure to the cryptocurrency sector.

The company’s achievement sends a clear message about the evolution of digital assets. The cryptocurrency economy is no longer on the margins but has become part of the established financial system.