Coinbase Exchange is set to make history as the first crypto-native firm to join the premier stock market’s S&P 500, years after its listing on Nasdaq.
American cryptocurrency exchange Coinbase Global, Inc. (COIN) will replace Discover Financial Services in the S&P 500 benchmark index. This marks a notable milestone for the publicly traded company, considering it is the first crypto firm to make it to the index.
Coinbase Brings Indirect Access to Crypto Stocks
In a Monday release, Coinbase announced that it would join the S&P 500, effective May 19, but before trading.
The S&P 500 is a widely known stock market index that tracks the performance of the 500 largest publicly traded companies in the United States. It is a benchmark that effectively gauges the health status of the equity market.
With the inclusion of COIN in the benchmark index, financial players can conveniently invest indirectly in crypto stocks. Like crypto-based Exchange-Traded Funds (ETFs), which have suddenly become a phenomenon in the United States, this recent development may boost the legitimacy of digital assets amongst traditional investors.
This comes amidst some disturbing news on Coinbase Premium. A week ago, CryptoQuant analysts caught sight of an impending offload by whales in the United States linked to Coinbase Premium. The gap suggests that Bitcoin (BTC) is trading lower on Coinbase than on other global exchanges.
Coinbase Milestone to Benefit Crypto Sector
More recent developments suggest that Coinbase is now better recognized as a financially stable and influential company, a perception that could further enhance its credibility with the general public.
This could also be a broader acceptance of the cryptocurrency ecosystem. In no time, it could create a path for other crypto firms to be recognized on the same pedestal.
The integration news has triggered COIN to record some price gains in the last 24 hours. The shares recorded more than a 10% increase in the hours following the announcement. It is only a matter of time before demand for the COIN shares from funds and ETFs that track the S&P 500 begins to top the roof.
Meanwhile, Coinbase currently controls a large portion of staked Ethereum, showing its greater reach in the broader industry.
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