365Crypto
Coinbase just joined the S&P 500. Yes, the same index that features corporate giants like Apple and Amazon now has a crypto company in the mix. That’s a big deal.
After years of fighting with U.S. regulators like the SEC, Coinbase has made it into one of the world’s top stock indexes. This isn’t just good news for Coinbase — it’s huge for the entire crypto space.
“This cements crypto’s legitimacy,” said Meryem Habibi from Bitpace. She’s not wrong. Index funds must now include Coinbase stock. That means even cautious investors, retirement accounts, and massive funds like BlackRock now hold a slice of crypto by default.
ARK Invest’s Jason Kennard called it a “milestone.” Why? Because a crypto-native firm finally met all the tough rules to join the S&P 500: profits, liquidity, and size.
Even skeptics are now exposed to crypto — whether they like it or not.
Passive Cash, Big Splash
With roughly $10 trillion tracking the S&P 500, Coinbase could pull in $10 billion in passive investments — just by being included. That’s like someone giving you free money just for showing up.
And that’s not even counting the indirect exposure this creates. Habibi believes this opens the door for more crypto firms like Circle and Fireblocks to aim for the big leagues too.
But not everyone is jumping for joy.
Wait, Didn’t They Just Get Hacked?
Yep. Coinbase also reported a security breach. Hackers might have stolen user info and private keys. The damage? Somewhere between $180 million and $400 million. Not great timing.
This kind of breach makes people nervous. It reminds some of the 2021 Ledger hack, which ended with real-world dangers like robbery and kidnapping.
Crypto + Wall Street = Frenemies?
Coinbase’s inclusion has fueled debate. Some say crypto and traditional finance (TradFi) are merging fast. Others think it’s just a business handshake, not a full-on marriage.
Experts point to things like JPMorgan’s blockchain use and PayPal’s stablecoin as signs of crossover. Meanwhile, Coinbase is now a key player for crypto ETFs and custody solutions.
Still, true convergence may only come when big banks start using crypto for payments, not just investment tools.
Who’s Next?
So, who could be the next crypto firm to join the S&P 500?
Maybe nobody — at least not soon. Companies like Galaxy Digital and Marathon Digital are still too early. Some aren’t even profitable yet.
COIN replaced Discover Financial in the index. That means the next crypto firm might need to kick out another finance giant. Not so easy.
But one thing’s clear: crypto is no longer on the sidelines. It’s suiting up for the big game — and now it’s playing in the majors.
