Coinbase to Join S&P 500 as Bitcoin Surges Past $100,000

Coinbase, one of the largest cryptocurrency exchanges in the U.S., is set to join the prestigious S&P 500 index, replacing Discover Financial Services, according to an announcement made Monday. The move comes just days after Bitcoin surpassed $100,000, marking a milestone in the ongoing crypto market rally.

Shares of Coinbase (COIN) jumped 8% in after-hours trading, reflecting investor optimism. The inclusion will take effect before markets open on May 19, as Discover transitions out of the index amid its acquisition by Capital One Financial.

A Major Step for Coinbase

Since its direct listing in 2021, Coinbase has seen significant growth and volatility. The company’s increasing influence in traditional finance has been bolstered by regulatory approval of spot Bitcoin ETFs and rising institutional interest in crypto assets.

Despite trading far below its 2021 high of over $357, Coinbase shares closed Monday at $207.22, giving it a market cap of $53 billion. With the S&P 500's structure requiring profitability, Coinbase met the criteria with its latest earnings report showing a net income of $65.6 million in Q1 2025.

Expanding Global Presence

In addition to its S&P 500 inclusion, Coinbase recently made headlines for agreeing to acquire Dubai-based crypto derivatives exchange Deribit in a $2.9 billion deal. This move marks the largest acquisition in the crypto industry to date and reflects Coinbase’s efforts to expand internationally amid evolving U.S. regulatory scrutiny.

Crypto Sector Gains Mainstream Traction

Coinbase joins a growing list of tech and digital-first companies added to the S&P 500 in recent months, including Palantir, Dell, and Super Micro Computer. The index’s increasing exposure to emerging tech trends like AI and crypto underscores how these sectors are reshaping financial markets.

Despite a 17% dip in Coinbase shares year-to-date, Bitcoin has risen roughly 10% in the same period, reaffirming its strength as digital assets gain mainstream acceptance.

What This Means for Investors

Coinbase’s entry into the S&P 500 is expected to boost demand for its stock, as index-tracking funds adjust their portfolios to include the company. It also represents a symbolic win for the crypto industry, signaling broader market validation and investor confidence.

As digital assets continue their march into mainstream finance, Coinbase’s elevation to the S&P 500 cements its role as a central player in the future of global finance.