In what many are calling a watershed moment for the cryptocurrency sector, Coinbase’s COIN stock skyrocketed 23% on Tuesday, closing at $256—its highest price in 12 weeks. The rally comes just days before Coinbase officially joins the S&P 500 index on May 19, positioning it as the first-ever U.S.-listed crypto firm to be included in the prestigious benchmark.
Wall Street Embraces Crypto—One Stock at a Time
This move isn’t just a headline; it’s a profound shift. Coinbase isn’t merely gaining a seat at the table with financial titans like Apple, Microsoft, and Nvidia—it’s staking a claim for crypto on Wall Street’s most watched index. Over the past three trading days alone, Coinbase has added over $15 billion to its market capitalization, a surge that underscores how seriously institutional investors are beginning to treat the crypto economy.
To qualify for the S&P 500, a company must meet stringent financial criteria, including profitability over four straight quarters and sufficient market liquidity. For Coinbase to check all the boxes in the volatile world of crypto is a sign of growing maturity in the sector—and that’s something many thought unlikely just a few years ago.
Industry Voices Applaud a Major Milestone
The crypto community isn’t staying quiet about this. Michael Saylor, chairman of Bitcoin-focused MicroStrategy, lauded the development, calling it a “major milestone for Coinbase and for Bitcoin.” Saylor knows a thing or two about crypto milestones—his firm has become one of the biggest corporate holders of Bitcoin and previously joined other major indices like the MSCI World Index and the Russell 1000.
Elsewhere, ETF Store President Nate Geraci pointed out the irony of traditional investors gaining exposure to Coinbase while still being restricted from directly investing in spot Bitcoin or Ethereum ETFs through platforms like Vanguard. “Many Vanguard investors will now own Coinbase, but they still can’t buy spot BTC or ETH ETFs. Vanguard is fighting a losing battle,” he remarked.
Bitwise co-founder Matt Hougan took the moment to reiterate a bold thesis: that Coinbase has the best shot at becoming the first trillion-dollar company born out of the crypto revolution.
The $15 Billion Inflow Prediction
Bitwise’s head of research, Ryan Rasmussen, is even more specific. He estimates that Coinbase could attract up to $15 billion in fresh capital simply by virtue of its inclusion in the S&P 500. With roughly $11 trillion in assets benchmarked to the index—via mutual funds, ETFs, and derivatives—index funds will be forced to buy COIN shares, regardless of their stance on crypto.
This forced exposure could create a dynamic similar to what happened when spot Bitcoin ETFs launched earlier this year, where institutional demand led to massive price spikes. Coinbase, now the de facto gateway to the crypto market for U.S. investors, is primed to ride this wave.
What’s Next for COIN?
From a technical standpoint, COIN’s breakout has cleared significant resistance, completing a bullish reversal pattern that analysts are closely watching. If momentum continues and investor sentiment holds strong, the next target could be the psychological $300 level.
With just days to go before its S&P 500 debut, Coinbase stands at the intersection of traditional finance and digital innovation—an intersection that’s becoming increasingly crowded. Whether this moment becomes a turning point for broader crypto adoption in traditional markets remains to be seen, but one thing is clear: Wall Street can no longer ignore crypto.
