Original author: Fairy, ChainCatcher
Original editor: TB, ChainCatcher
Four years ago, crypto companies were still struggling to get listed on Nasdaq; now, Coinbase has stood on the high ground of the global capital market. This platform, which was once subject to regulatory doubts and frequently involved in public opinion storms, will officially become a member of the worlds most influential index, the SP 500.
Behind this is the huge demand for passive funds, the increasingly accelerated entry of institutions, and the significant leap in symbolic significance. A new era has quietly begun.
13 years of ups and downs to the top of the mainstream capital market
It took Coinbase 13 years from its founding to its inclusion in the SP 500. On this day in 2012 (May 13), Coinbase was officially established, when Bitcoin was just an experimental currency among geeks. Nine years later, Coinbase landed on the Nasdaq on April 14, 2021, with the stock code COIN. The highest price on the first day reached $429.54, and the market value once reached $85 billion, becoming a milestone in the crypto industry.
Coinbases stock price trend is deeply tied to the bull-bear cycle of the crypto market. In 2022, against the backdrop of a sharp market correction, COINs stock price once fell to $33, a year-on-year decline of 86%. It was not until October 2023 that market sentiment gradually warmed up and the stock price re-entered the upward channel.
Today, on the 13th anniversary of the companys founding, Coinbase once again ushered in a historic moment: it will replace Discover Financial Services and become the first crypto company to be included in the SP 500. After the announcement, COINs stock price rose 8% during the day, now at about $207, with a total market value of $52.78 billion. The era of crypto financial institutions is quietly taking shape in it.
Image source: Google Finance
Profit and market value, Coinbase has achieved the hardcore standard
The constituent stocks of the SP 500 Index are selected by the Index Committee and adjusted in March, June, September and December every year. According to the latest standards in March this year, candidate companies must meet the market value of at least US$20.5 billion, good liquidity and a high proportion of free float. In addition, the company must be profitable in the most recent quarter and have a cumulative net profit of positive in the past four quarters.
As early as February this year, Oppenheimer analyst Owen Lau predicted that Coinbase was expected to be included in the SP 500. He maintained a buy rating on COIN and raised the target price to US$388.
According to the latest financial report released on May 9, Coinbase recorded $2 billion in revenue in the first quarter of 2025, slightly lower than the $2.3 billion in the previous quarter; net profit was $66 million, which remained positive despite a sharp decline from $1.2 billion in the same period last year. More importantly, Coinbase has been profitable for five consecutive months, with a free float of 95%, and all indicators meet the inclusion criteria of the SP 500.
Coinbase Financial Information
In addition to Coinbase, there are already many companies involved in the crypto business in the SP 500, such as Block, PayPal and Visa. It is worth mentioning that Strategy (formerly MicroStrategy), which holds a large amount of Bitcoin, was included in the Nasdaq 100 Index in December last year. Some analysts believe that although the company has not yet fully met the profitability standards, with the implementation of the new accounting standards in January 2025, Strategy is expected to be eligible for inclusion in the SP 500 quarterly adjustment in June.
What is the significance behind SP’s selection?
Coinbases successful listing on the SP 500 is not only a major breakthrough in its company history, but is also likely to trigger a series of far-reaching changes in the cryptocurrency industry. From market impact to industry trends to symbolic significance, Coinbases inclusion provides a new perspective for the industry.
Passive capital inflow and surge in trading volume
From the perspective of market impact, Coinbases inclusion may significantly boost its stock trading volume. Juan Leon, senior investment strategist at Bitwise, pointed out that entering the SP 500 will increase COINs daily trading volume to seven times the current level.
Juan Leon took Discover Financial as an example. Currently, the companys weight in the SP 500 is about 0.10%. Considering that the SP 500 has about $13.5 trillion in assets, the passive allocation demand corresponding to its weight may reach $13.5 billion. However, COINs average daily trading volume in the past three months was only $1.85 billion, which means that a large amount of funds will passively flow into the stock.
Accelerating the crypto industry IPO boom
Many crypto companies that had previously planned IPOs, such as Circle, eToro, and Kraken, are now moving forward with their IPO plans. Currently, Circle, eToro, Bgin Blockchain, Chia Network, Gemini, and Ionic Digital have submitted S-1/F-1 documents, and are likely to go public in Q2 2025; BitGo, Kraken, Bullish Global, Consensys, and Figure have already indicated that they have IPO plans or are in the advisory negotiation stage, and have great potential to go public in 2025-2026.
At the same time, Hong Kong crypto investment company Animoca Brands also plans to go public in the United States. The company is valued at nearly $6 billion in 2022 and currently holds $300 million in cash and stablecoins and $538 million in digital assets.
The success of Coinbase has provided strong market confidence for these companies, and the IPO boom may heat up again.
(Related reading: U.S. crypto companies enter a boom era: mergers and acquisitions, IPOs, and tokenization boom )
A sign of the times as crypto goes mainstream
The inclusion criteria of the SP 500 not only focus on hard indicators such as market capitalization, earnings and liquidity, but also emphasize industry representativeness. Selected companies must represent important industries in the U.S. economy and be comprehensively evaluated by the index committee.
Coinbases successful selection reflects the growing importance of the crypto industry in the U.S. economic landscape. Dan Dolev, senior payment analyst at Mizuho Securities, commented: This is a sign of the times, which means that cryptocurrency stocks have been accepted by the mainstream financial market.
Coinbases inclusion in the SP 500 marks a turning point in an era. It symbolizes the crypto industrys transition from experimental finance to institutional recognition. The ensuing capital restructuring, IPO boom, and regulatory dialogue will all become important parts of this wave of change.
As more and more “crypto-native forces” knock on the door of Wall Street, a new chapter in financial history has been opened.
