From Yahoo Finance: 2025-05-19 10:41:00

Coinbase officially joins the S&P 500, replacing Discover Financial Services, marking a significant moment for crypto’s mainstream legitimacy. With a market cap of $67 billion, shares up almost 30%, and news of a hack, Coinbase’s inclusion forces index funds to buy stock, giving investors unintended crypto exposure.

Coinbase’s evolution from retail trading platform to infrastructure company earns it a spot in the S&P 500, surviving regulatory challenges and market volatility. While its inclusion meets strict standards, risks remain with heavy reliance on trading volumes and analysts cautioning about long-term dominance in a volatile sector.

The event sets a precedent for crypto-native companies to become systemically relevant financial entities, reshaping capital markets. Rather than signaling traditional finance’s demise, it highlights a convergence where digital-native infrastructure is integrated into the mainstream financial fabric, similar to fintech’s evolution within the banking ecosystem.

Read more: Coinbase joins the S&P 500