Coinbase Becomes First Crypto Firm to Join S&P 500 Amid Bitcoin Surge

Coinbase Global Inc. became the first cryptocurrency company to join the S&P 500 on May 12, 2025, a milestone that underscores the growing acceptance of digital assets in traditional finance as Bitcoin surpassed $100,000 last week.

Coinbase replaces Discover Financial Services in the S&P 500, effective before trading on May 19, 2025, following Discover’s acquisition by Capital One Financial, according to a CNBC report.

The crypto exchange reported a net income of $65.6 million, or 24 cents per share, for its latest quarter, down from $1.18 billion, or $4.40 per share, a year earlier. Despite the profit decline, revenue grew 24% to $2.03 billion, driven by heightened trading activity.

Shares of Coinbase surged 8% in extended trading after the announcement, reflecting investor optimism.

The inclusion in the S&P 500, a benchmark index tracked by institutional investors and 401(k) plans, is expected to draw significant capital to the crypto sector.

“This is a big deal,” said Emilie Choi, Coinbase president, in a post on X, thanking customers, employees, and investors for their support.

The milestone aligns with broader trends in blockchain adoption. A March 2025 World Economic Forum report highlights that tokenization—converting assets into blockchain-based digital tokens—could unlock $230 trillion in collateral by enabling 24/7 markets and instant settlement, far exceeding the current $25 trillion eligible for use. This technology bridges traditional finance and crypto, enhancing liquidity and efficiency.

Industry leaders praised the move, with Michael Saylor, chairman of MicroStrategy, calling it a “major milestone for Bitcoin” in an X post.

Bitcoin traded at $102,700 on May 13, 2025, up 1.2% in the past 24 hours, with a market capitalization of $2.01 trillion, according to CoinMarketCap. Coinbase’s trading volume also rose 15% in the last day, reaching $3.8 billion, per company data.

The announcement follows Coinbase’s $2.9 billion acquisition of Dubai-based Deribit, a crypto derivatives platform, on May 8, 2025, marking the industry’s largest corporate deal to date.

The acquisition aims to expand Coinbase’s global footprint amid increasing regulatory scrutiny. Analysts say this S&P 500 inclusion could pave the way for further crypto integration into mainstream finance, though challenges like market volatility and regulatory uncertainty remain.