Coinbase Stock Surges as S&P 500 Inclusion Signals Institutional Confidence

Coinbase shares sharply rose after news broke that the crypto exchange will be added to the S&P 500. The company will officially join the index on May 19, replacing Discover Financial, which is set to merge with Capital One.

After the announcement, Coinbase shares surged by 7 percent in the after-market hours. The positive momentum carried over into normal trading, and the stock jumped 18.88 percent to $246.36 on May 13.

This development is the first occasion of a crypto-native company being added to the most influential stock market index in the United States. With this inclusion, Coinbase becomes part of a group of companies that are very popular, stable, influential, and valued by investors.

Also Read: Dubai Becomes First Government to Accept Crypto for All Public Services

Recognition Could Mark a Turning Point for the Crypto Sector

According to Matt Hougan, Chief Investment Officer at Bitwise, Coinbase could be on the path to becoming one of the world’s most valuable companies. Hougan recently named Coinbase the top public company with a market cap under $100 billion that could reach a $1 trillion valuation.

Being listed in the S&P 500 might prove the company’s long-term viability. It also enhances the possibility that more institutional investors consider including COIN stock in their portfolios.

Apart from that, inclusion in the index usually results in the automatic purchase of the company’s stock by funds following the S&P 500, which will also bring additional support to the stock. The more traction Coinbase gets, the more it stands to gain from additional analyst coverage and extensive media coverage.

The timing of inclusion is in line with the increasing interest in digital assets and the infrastructure that supports them. Coinbase’s great brand and dominance over the crypto market might explain its leading status, as the crypto industry is constantly developing.

This growth positions Coinbase as a company for the long haul, strengthened by its increasing relevance in traditional financial markets.

Conclusion

Coinbase’s entry into the S&P 500 places it on a path few crypto companies have traveled. The move reflects growing recognition of its importance in the broader financial landscape.

Also Read: Shiba Inu Explodes on Binance as Trading Volume Surges Past $97 Million

The post Coinbase Stock Surges as S&P 500 Inclusion Signals Institutional Confidence appeared first on 36Crypto.