Crypto Exchange Coinbase (Coin) rose over 8% Monday after the market, which closed on news that the stock will be included in the broad market S&P 500 stock index.
The company would replace Discover Financial starting on May 19, according to an S&P press release. Discover Financial is acquired by Capital One.
The S&P 500 tracks 500 of the largest listed companies in the US across more sectors, including tech, healthcare, finances and more. Prominent names in the index include Apple, Microsoft, Amazon and Google. Coin on a market capital of almost $ 53 billion is currently dealing with the NASDAQ exchange.
The inclusion would be a significant milestone for the digital asset industry, giving millions of average investors and model portfolios exposure to a cryptophocused company.
“Coin by being in any portfolio of America,” said Juan Leon, senior investment strategist at Asset Manager Bitwise, in an x post. “S&P 500 Inclusion will force 7x the daily trade volume to [the] stock. “
The company’s shares jumped to as high as $ 225 after the reports, an increase of 8.6% in the post-market hours and added it almost 4% gain Monday.
Update (12 May, 21:50 UTC): Adds analyst comments, details of capital one who acquires Discover Financial.
