Coinbase’s inclusion in the S&P 500 marks a pivotal moment not only for the company but for the broader crypto industry, signaling growing acceptance of digital assets in mainstream finance. Meryem Habibi, Chief Revenue Officer at Bitpace, remarked that this development “normalizes crypto exposure” for traditionally conservative portfolios, opening the door to institutional participation that might have previously steered clear of digital assets.
Coinbase’s entry into the S&P 500 is particularly notable given its recent history of regulatory battles with agencies like the SEC and the CFTC throughout the 2020s. But this isn’t just a victory for one company.
“This is a milestone for the entire crypto and blockchain space,” said Habibi, noting that the move adds legitimacy to the sector as a whole. By meeting the S&P 500’s strict criteria—including profitability, liquidity, and market capitalization—Coinbase has become the first crypto-native firm to join what is arguably the most prestigious index in global finance.
Jason Kennard of ARK Invest Europe emphasized that this sends a strong message to institutional investors: crypto infrastructure is now a mature, credible component of the financial system. Steve Sosnick, chief strategist at Interactive Brokers, echoed this sentiment, saying that with Coinbase now included, S&P 500 index fund investors will gain indirect crypto exposure, whether they realize it or not.
Coinbase’s addition could also channel billions of dollars in passive investment into the company. Funds managed by giants like BlackRock, Vanguard, and State Street, which track the S&P 500, will be required to include Coinbase in their holdings. S&P DJII estimates that about $10 trillion tracks the index. If Coinbase gets even a 0.1% weighting, as Habibi suggests is reasonable, it could attract up to $10 billion in passive capital inflows without active investor decisions.
That said, Coinbase still faces challenges. Just last week, the company disclosed a data breach involving password or private key compromises, potentially costing between $180 million and $400 million, and exposing tens of thousands of users to risks such as identity theft or physical threats, reminiscent of the 2021 Ledger hack.
Despite these setbacks, Habibi pointed out that Coinbase’s S&P 500 debut signals more than financial success—it highlights growing recognition for regulatory compliance, operational maturity, and long-term vision in the crypto industry. She believes this could pave the way for other firms like Circle, Chainalysis, and Fireblocks to seek public listings and eventually aim for index inclusion.
However, not everyone agrees that a wave of crypto companies will follow. Russell Rhoads, a professor at Indiana University, noted that while inclusion makes sense given crypto’s rising economic relevance, S&P 500 membership requires more than market cap—firms must also show consistent profitability.
Owen Lau of Oppenheimer & Co. suggested that the long-predicted convergence between traditional finance (TradFi) and crypto is already underway, citing recent partnerships and listings, such as Robinhood/Bitstamp, Kraken/Ninja Trader, and Ripple/Hidden Road.
Others, like Seoyoung Kim of Santa Clara University, are more cautious. She argues that while full convergence is still distant, increased institutional adoption of blockchain and tokenization technologies is likely.
The market is already seeing signs of this fusion. JPMorgan’s Onyx platform, Nasdaq’s digital asset custody service, and PayPal’s stablecoin PYUSD all reflect growing use of blockchain by traditional players. As Habibi put it, “Crypto-native firms are adopting traditional structures, while traditional financial institutions are integrating decentralized technologies.”
Looking ahead, who might be next to join the S&P 500? Experts say it’s unlikely that another crypto company will be added soon. Firms like Galaxy Digital, Marathon Digital, Riot Platforms, and MicroStrategy (MSTR) have either just begun to meet listing criteria or still struggle with consistent profitability. Gemini remains private and has valuation hurdles to overcome.
In the end, as Sosnick summed up, there are currently no crypto-related firms with both the market cap and sustained earnings needed to meet the S&P 500’s stringent requirements. For now, Coinbase’s inclusion stands as a symbolic and strategic breakthrough, and a strong sign that crypto is no longer peripheral—it’s becoming part of the financial core.
