Overview

• Coinbase's inclusion in the S&P 500 reflects its financial turnaround, achieving profitability over the last four quarters and meeting the index's eligibility criteria.
• The move follows Discover Financial Services' pending acquisition by Capital One, which necessitated its removal from the index.
• Coinbase's stock surged by up to 25% in response to the announcement, driven by anticipated demand from index-tracking funds and institutional investors.
• This milestone highlights the growing mainstream acceptance of crypto, with Coinbase serving as a custodian for Bitcoin ETFs and expanding through its $2.9 billion acquisition of Deribit.
• The inclusion comes as the U.S. adopts a more crypto-friendly regulatory environment, signaling broader institutional recognition of the sector.