Coinbase stock surges on being added to S&P 500 on May 19

Crypto exchange Coinbase will soon be indirectly added to millions of investment portfolios as it makes it into the S&P 500 index.

Coinbase Global (COIN) will join the Standard and Poor's 500 (S&P500) index fund on May 19, financial information services platform S&P Global said in a recent statement.

The crypto exchange will replace Discover Financial Services (DFS), which was recently acquired by Capital One Financial Corp (COF), S&P Global said on May 12.

The S&P 500 is a stock market index that tracks the performance of 500 of the largest, publicly traded companies in the US, representing a broad measure of the overall US stock market.

Coinbase's inclusion in the S&P 500 should increase demand for its stock because index funds and exchange-traded funds that track the S&P 500 must buy COIN shares to mirror the index.

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