Coinbase has reached the S&P 500 in 2013, and Wall Street has entered the "crypto FOMO" moment?

Author: Fairy, ChainCatcher

Edited by: TB, ChainCatcher

Four years ago, crypto companies were still running around to land on the Nasdaq; now, Coinbase has stood on the high ground of the global capital market. This platform, which was once questioned by regulatory and frequent public opinion storms, will officially become a member of the world's most influential index, the S&P 500.

Behind this is a huge demand for passive capital, an accelerated institutional entry, and a major leap in the symbolic sense. A new era has quietly begun.

13 years of ups and downs to the mainstream capital market

Coinbase has been around for 13 years from its founding to its S &P 500 selection. Today in 2012 (May 13), Coinbase was officially established. At that time, Bitcoin was just an experimental currency among geeks. Nine years later, Coinbase landed on Nasdaq on April 14, 2021, with the stock code COIN. The highest price on the first day reached US$42.954, and its market value once reached US$85 billion, becoming a milestone in the crypto industry.

Coinbase's stock price trend is deeply bound to the bull and bear cycle of the crypto market. In 2022, against the backdrop of a sharp pullback in the market, COIN's stock price once fell to US$33, a year-on-year decline of 86%. It was not until October 2023 that market sentiment gradually recovered and the stock price re-entered the upward channel.

Now, at the 13th anniversary of the company's establishment, Coinbase has once again ushered in a historical moment: it will replace Discover Financial Services and become the first crypto company to be included in the S&P 500. After the news was announced, COIN's stock price rose 8% during the day and is now at about US$207, with a total market value of US$52.78 billion. The era of institutionalization of crypto-financial finance is quietly taking shape in it.

Source: google finance

Profit and market value, Coinbase meets the standard

The S&P 500 component stocks are selected by the Index Committee and are adjusted each year in March, June, September and December. According to the latest standards for March this year, candidates need to meet a market value of at least US$20.5 billion, good liquidity and a high proportion of free-flow shares. In addition, the company must achieve profitability in the most recent quarter and the cumulative net profit in the past four quarters is positive.

As early as February this year, Oppenheimer analyst Owen Lau predicted that Coinbase would be selected for the S&P 500. He maintained his "buy" rating for COIN and raised his target price to $388.

According to the latest financial report disclosed on May 9, Coinbase recorded revenue of US$2 billion in the first quarter of 2025, slightly lower than US$2.3 billion in the previous quarter; net profit was US$66 million, which remained positive profit despite a sharp decline from US$1.2 billion in the same period last year. More importantly, Coinbase has achieved profitability for five consecutive months, with free-flowing shares accounting for as high as 95%, and all indicators meet the S&P 500 inclusion criteria.

Coinbase Financial Information

In addition to Coinbase, there are currently many companies in the S&P 500 that are involved in crypto businesses, 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 fully met its profit standards, with the implementation of new accounting standards in January 2025, Strategy is expected to qualify for the S&P 500 quarter adjustment in June.

What is the significance behind the S &P selection?

Coinbase's successful login to the S&P 500 is not only a major breakthrough in its company's history, but also a possibility of triggering a series of far-reaching changes in the cryptocurrency industry. From market influence to industry trends, to symbolic improvements, Coinbase's selection provides a new perspective for the industry.

Passive capital influx and trading volume surge

From a market impact perspective, Coinbase 's selection may significantly drive its stock trading volume. Juan Leon, senior investment strategist at Bitwise, noted that entering the S&P 500 will increase COIN's daily trading volume to seven times the current level.

Juan Leon takes Discover Financial as an example, the company currently has a weight of about 0.10% in the S&P 500. Considering that the S&P 500 has approximately $13.5 trillion in asset tracking, its weight corresponding to passive allocation requirements may reach $13.5 billion. COIN's average daily turnover in the past three months was only US$1.85 billion, meaning a large amount of funds will passively flow into the stock.

Accelerate the IPO boom in the crypto industry

Circle, eToro, Kraken and other crypto companies that had previously planned IPOs are promoting IPO plans. At present, Circle, eToro, Bgin Blockchain, Chia Network, Gemini, lonic Digital, etc. have submitted S-1/F-1 documents, and the possibility of listing in Q2 2025 is relatively high; BitGo, Kraken, Bullish Global, Consensys, Figure, etc. have stated that they have IPO plans or are in the consultant negotiation stage, and there is great potential for listing from 2025 to 2026.

Meanwhile, Hong Kong crypto investment company Animoca Brands also plans to go public in the United States. The company is valued at nearly US$6 billion in 2022 and currently holds US$300 million in cash and stablecoins, and digital assets of US$538 million.

Coinbase's success provides strong market confidence for these companies, and the IPO boom may heat up again.

(Related Reading: American crypto companies enter a rush era: mergers and acquisitions, IPOs and tokenization boom )

The sign of the era of crypto moving towards mainstream

The inclusion criteria of the S&P 500 not only focus on hard indicators such as market value, profitability 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.

Coinbase's successful selection reflects the growing importance of the crypto industry in the U.S. economic landscape. "This is a sign of the times, which means cryptocurrency stocks have been accepted by mainstream financial markets," said Dan Dolev, senior payment analyst at Mizuho.

Coinbase’s inclusion in the S&P 500 marks the turning point of an era. It symbolizes that the crypto industry moves from experimental finance to institutionalized recognition, and the subsequent capital reconstruction, 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 to Wall Street, financial history has opened a new chapter.