Shares of Coinbase Global (NASDAQ:COIN) soared more than 24% on Tuesday after it was announced that the leading U.S. crypto exchange will be added to the S&P 500 index, taking the place of Discover Financial Services (NYSE:DFS).
The addition, which becomes official on May 19, marks a major milestone for Coinbase and highlights its rising influence within the financial industry.
This change comes after Capital One Financial (NYSE:COF) secured regulatory approval to acquire Discover, a deal expected to finalize on May 18.
According to S&P Dow Jones Indices, Coinbase will be categorized under the financials sector within the benchmark index.
Analysts at Oppenheimer called Coinbase’s S&P 500 inclusion a “watershed moment,” noting that they had forecasted it as one of the key catalysts for the company in 2025. The firm emphasized that the move could have significant effects not just for Coinbase but for the broader cryptocurrency market.
The analysts pointed out that inclusion in the S&P 500 boosts exposure to institutional investors—especially index funds—as well as to active funds that track or benchmark against the index. Previously, the lack of significant institutional holdings was seen as a bearish argument against the stock, but now it’s being seen as a potential strength. Oppenheimer raised its price target for Coinbase to $293, citing the expected increase in institutional demand.
Meanwhile, Gus Gala of Monness Crespi Hardt upgraded Coinbase to a Buy rating and raised the stock’s price target to $300. He noted that the firm hadn’t accounted for Ethereum’s recent 35% surge tied to the Pectra upgrade, nor for Coinbase’s now clearly conservative guidance. Gala referred to the S&P 500 inclusion as a bonus “gravy” on top of improving fundamentals.
