Coinbase to Join S&P 500, Crypto Stocks Surge

Coinbase will become the first cryptocurrency company to join the S&P 500 on May 19, 2025, replacing Discover Financial Services after its acquisition by Capital One. The announcement led to an 8-13% surge in Coinbase shares and also drove immediate price and trading volume increases in Bitcoin and Ethereum, highlighting broad positive sentiment in crypto markets. CEO Brian Armstrong called the inclusion a validation of crypto and predicted the asset class would soon feature in mainstream portfolios such as 401(k)s. The S&P 500 entry is expected to boost demand for Coinbase shares as index funds rebalance, widening crypto exposure for investors. Coinbase's strong financial performance, recent profit, and $2.9 billion acquisition of Deribit have bolstered its readiness for this step. A favorable regulatory climate has also contributed to the company's historic inclusion.