From Nasdaq
May 14, 2025 4:00 am:

1. Coinbase shares surged 24% on May 13, 2025, after being added to the S&P 500 Index, replacing Discover Financial Services. The cryptocurrency exchange reported net income of $65.6 million in its latest quarter, with revenues up 24% year over year to $2.03 billion.
2. ETFs like CRPT, BKCH, FDIG, and COIW, with over 10% of their portfolios in COIN shares, saw gains on May 13. CRPT jumped 7.4%, BKCH gained 6.8%, FDIG added 6.7%, and COIW shot up 30% after Coinbase’s S&P 500 inclusion announcement.
3. The rise in Coinbase’s stock price following the S&P 500 inclusion is attributed to passive funds and ETFs purchasing shares to track the index. Despite a rough year for Coinbase shares, the latest rally marks a significant gain.
4. Coinbase’s alignment with Donald Trump’s return to the White House has impacted its stock performance. The company saw a 31% surge in November 2025 but faced drops in February and March due to market uncertainties. Despite recent gains, the stock is down slightly for the year.
5. Coinbase’s $2.9 billion acquisition of Deribit, a major crypto derivatives exchange, is the largest deal in the industry. The acquisition aims to expand Coinbase’s global presence and diversify revenue streams outside the United States, positioning the company for strategic growth.
6. Analysts have cut their earnings estimates for COIN shares, raising concerns about overvaluation. With a P/E ratio of 29.52X and a Price/Cash Flow ratio of 23.84X, COIN shares are trading higher than industry averages, signaling potential risks for investors.
7. While Coinbase shows growth potential, concerns about fundamentals and valuation remain. Investors can mitigate risks by considering ETFs for exposure to the cryptocurrency market. Stay informed on top news and analysis with Zacks’ free Fund Newsletter for valuable insights.

Read more at Nasdaq: Coinbase Soars 24% on S&P 500 Inclusion: What Lies Ahead for ETFs?