Coinbase (Coin) shares saw an increase of over 8% on Monday, buoyed by news of its upcoming inclusion in the widely recognized S&P 500 index. The exchange is set to take the place of Discover Financial, which is being acquired by Capital One, starting on May 19.
The S&P 500 comprises 500 of the largest publicly traded companies in the United States across various sectors, such as Technology, Healthcare, and Finance. Familiar names within this index include Apple, Microsoft, Amazon, and Google. Currently, Coinbase is traded on the Nasdaq, with a market value close to $53 billion.
This milestone signifies a notable achievement for the cryptocurrency sector, increasing visibility for both everyday investors and companies focused on digital assets. “Coins aim to be in every American portfolio,” remarked Juan Leon, a senior investment strategist and asset manager. He added, “Inclusion in the S&P 500 can amplify daily trading volumes of the stock by sevenfold.”
Following this news, Coinbase’s shares climbed to $225, marking an 8.6% rise in after-hours trading and nearly 4% on Monday alone.
