Coinbase becomes the first Bitcoin and crypto company to join the S&P 500

Coinbase Global Inc. (NASDAQ:COIN) officially joins the S&P 500 index starting May 19. It will replace Discover Financial Services (NYSE:DFS), a service acquired by Capital One Financial (NYSE:COF), an existing member of the index.

This is a big move for Coinbase and a bigger signal for Bitcoin. To get a crypto company to be added to one of the most important indexes in the United States, it shows how far the industry has gone. It’s not just hype – it’s becoming a real component of the traditional financial system.

Coinbase posted on its X account: “Thanks to everyone who made Crypto join the S&P 500 for the first time.”

To enter the S&P 500, companies need to meet some strict requirements. With a market capitalization of at least $18 billion, they own most of the stocks held by the public, have been profitable over the past four quarters, and are listed on U.S. exchanges. Coinbase checked all of these boxes, with a market cap of over $40 billion and has been well-received lately.

Once Coinbase is added, every fund tracking the S&P 500 will need to include it in its portfolio. This means more demand for stocks, which could raise prices in the near term. But more importantly, it brings more exposure and credibility to the entire encrypted space.

“Congratulations to Brian Armstrong for adding $coin to the S&P 500,” said Strategy Executive Chairman Michael Saylor. “Common Foundation and the Major Milestones for Bitcoin.”

Now let’s talk about Bitcoin. Coinbase is one of the top platforms people use to buy and sell Bitcoin. Having it in the S&P 500 makes it easier for traditional investors to get the risk of Bitcoin. It also helps reduce the idea of ​​bitcoin and crypto is just some risky gambling.

And the numbers are self-evident. Bitcoin has outperformed the S&P 500 over the past 14 years, and gold has high profit margins. Bitcoin has soared 7,200,000% since 2010, while S&P’s 500-year 306% and 116% surge. Even looking at a shorter schedule, Bitcoin consistently beats. For example, Bitcoin has grown 27% over the past year, while gold has grown 37% while the S&P 500 has only risen 5%. Bitcoin has risen 1,138% over the past five years, far exceeding 85% of gold and 92% in the S&P 500 years.