Crypto news today: Coinbase shares surge on S&P 500 inclusion news, marking crypto milestone
A new entrant to Wall Street’s premier index
Coinbase is set to join the S&P 500, which tracks 500 of the largest publicly traded US companies across diverse sectors, effective before the market opens on May 19.
According to an S&P press release, Coinbase will replace Discover Financial Services (DFS) in the index, as Discover is currently in the process of being acquired by Capital One.
he anticipated impact on trading volume is substantial. “COIN about to be in every portfolio in America,” commented Juan Leon, senior investment strategist at asset manager Bitwise, in a post on X (formerly Twitter).
He projected, “The S&P 500 inclusion is going to force 7x the daily trading volume into [the] stock,” as index funds rebalance their portfolios to include the new constituent.
News of the impending S&P 500 inclusion sparked immediate investor excitement.
Coinbase shares jumped to as high as $225 in post-market trading, an increase of 8.6%, building upon a nearly 4% gain achieved during Monday’s regular trading session.