Coinbase Global Inc. (NASDAQ: MOIN) officially joins the S&P 500 from 19 May. It replaces Discover Financial Services (NYSE: DFS), which is acquired by Capital One Financial (NYSE: COF), an existing member of the index.
This is a major feature of coinbase and an even bigger signal to Bitcoin. In order for a cryptic business to be added to one of the most important indices in the United States shows how far this industry has come. It’s not just hype anymore – it becomes a real part of the traditional financial system.
“Thank you to everyone who allowed a cryptic business to join the S&P 500 for the first time in history,” Coinbase released their X account.
To enter the S&P 500, a company must meet a few strict requirements. They need a market capital of at least $ 18 billion, most of their shares owned by the public, have been profitable in the last four quarters and be listed on a US exchange. Coinbase controls all these boxes with a market capital over $ 40 billion and solid newer earnings.
Once the Coinbase is added, each fund that tracks the S&P 500 must include it in their portfolios. This means more demand for the stock that can push the price up in the short term. But more importantly, it brings more exposure and credibility to the entire crypto area.
“Congratulations Brian Armstrong to $ Coin, added to the S&P 500 index,” said Strategy Executive President Michael Saylor. “An important milestone for coinbase and for bitcoin.”
Now let’s talk about Bitcoin. Coinbase is one of the best platforms people use to buy and sell Bitcoin. Having it in the S&P 500 makes Bitcoin exposure more accessible to traditional investors. It also helps reduce the idea that Bitcoin and Crypto are just some risky gamble.
And the numbers speak for themselves. Over the past 14 years, Bitcoin has surpassed the S&P 500 and gold by a huge margin. Since 2010, Bitcoin has risen a staggering 7,200,000%compared to the S&P 500’s 306%and Gold’s 116%. Even when looking at shorter time frames, Bitcoin consistently beats both. In the past year, for example, Bitcoin has increased by 27%, while gold has increased by 37%and the S&P 500 has only risen 5%. In the last five years, Bitcoin has achieved 1,138%, far surpassed Gold’s 85%and S&P 500’s 92%.