Crypto exchange Coinbase will be included in the S&P 500 index

What’s new? Shares of the leading US centralized crypto exchange (CEX) Coinbase (COIN) will be included in the S&P 500 stock index, which tracks the top 500 US companies. As a result, Coinbase will become the first crypto firm in this index.

Material by CNBC

What else is known? Coinbase will replace Discover Financial Services in the S&P 500. The change will take effect before the start of trading on May 19. On the background of the news, COIN shares added 8% on the aftermarket. The securities are trading at $207,22 on Nasdaq, having added 21% over the month. At the same time, since the beginning of the year, the decline amounted to 19%.

The exchange went public on April 14, 2021, through a direct listing on Nasdaq. It is the largest publicly traded crypto company with a market capitalization of $53 billion. At its peak, it was as high as $85 billion.

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In February, Oppenheimer analyst Owen Lau predicted that Coinbase could soon be included in the S&P 500 after five months of rising financial performance. Adding to the S&P 500 requires positive earnings for the most recent quarter and cumulatively for the previous four quarters.

During its operation, Coinbase’s revenues have been volatile due to the volatility of the crypto market. For example, the exchange reported revenue of $7,4 billion in 2021 and a loss of $1,1 billion in Q2, 2022.

However, the exchange has benefited from a more liberal regulatory environment under Donald Trump’s administration. Several competing platforms, including Bullish, Gemini, and Kraken, have also reported plans to enter the exchange due to the favorable regulatory environment.

Coinbase reported adjusted net income of $527 million for the first quarter of 2025. Its total revenue was $2 billion, down from Q4 2024 results of $2,3 billion. Transaction revenue fell 19% to $1,2 billion in the period, as trading volume fell 10%.

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Earlier this month, Coinbase announced the purchase of Dubai-based cryptocurrency derivatives exchange Deribit for $2,9 billion. The move will allow the exchange to expand its growing derivatives division. Derivatives trading makes up a much larger percentage of total crypto trading compared to the spot markets, which Coinbase dominates in the United States.

Other companies in the S&P 500, including Block, PayPal ,and Visa, also provide crypto services. Michael Saylor’s Strategy, which is the largest holder of bitcoin among publicly traded companies, is not included in the S&P 500 index due to its smaller market capitalization.