Coinbase is now set to join the S&P 500, a move leading to a sharp rise in COIN stock price.
After a recent announcement that the top crypto exchange would join the S&P 500, Coinbase has again been the subject of media attention. This development is a significant milestone for the exchange, as it will become the first crypto company to accomplish this feat. Meanwhile, this development has resulted in a significant increase in the price of COIN.
Discover Financial to be replaced by Coinbase in the S&P 500
Coinbase Global will replace Discover Financial in the S&P 500, effective before the opening of trading on Monday, May 19, according to a press release from the S&P Dow Jones Indices.. The exchange is replacing Discover as Capital One Financial acquires the financial institution. The crypto exchange will trade under the ticker ‘COIN,’ increasing the company’s visibility and attracting additional investors.
Following the S&P 500 announcement, according to Nasdaq data, Coinbase’s stock experienced an 8% increase. The COIN stock price has increased by more than 17% in the past month, currently trading at approximately $224. Nevertheless, the stock has experienced a decline of more than 16% year-to-date.
This announcement is made mere days after the crypto exchange announced an agreement to acquire Deribit, a crypto options firm, for $2.9 billion. This transaction represents the largest merger and acquisition in the history of the cryptocurrency industry. Bitwise CIO Matt Hougan anticipated that the exchange could become a trillion-dollar organization after the announcement.
Michael Saylor, the founder of Strategy and a Bitcoin maximalist, congratulated Coinbase and its CEO Brian Armstrong, stating that it is a significant milestone for both the exchange and Bitcoin.
In response to the announcement, the foremost cryptocurrency exchange has stated on its X account. “The X post read,”
We are grateful to all those who facilitated the first-ever inclusion of a cryptocurrency company in the S&P 500.
Exchanges’ executives respond to the announcement
Brian Armstrong commented on the accomplishment in an X post, stating that his exchange had recently become the first and only crypto company to be admitted to the S&P 500. He further stated that this milestone indicates that crypto is here to stay, a sentiment that has been held by true believers, including retail and institutional investors, as well as employees and partners.
Emilie Choi, the Chief Operating Officer of the foremost cryptocurrency exchange, also declared that this development is “significant.” She stated that the S&P 500 is perhaps the most closely monitored and influential index in the world and serves as a beacon for institutional capital. Choi also stated that the day is excellent for Coinbase, its customers, employees, and retail and institutional investors.
