Another milestone in the cryptocurrency world! Next week, Coinbase will be included in the S&P 500 index

The cryptocurrency industry is reaching a milestone moment, as Coinbase is set to join the S&P 500 index. For cryptocurrency investors, this move represents Wall Street's mainstream recognition of the digital asset space and may drive more index funds and institutional capital into related stocks and the crypto market.

Cryptocurrency Stocks Enter the Mainstream

According to a press release from S&P Dow Jones Indices, the largest cryptocurrency exchange in the U.S., Coinbase Global, will be added to the S&P 500 index, replacing Discover Financial Services, which is set to be acquired by Capital One Financial. This change will take effect before trading begins on May 19.

In response to this news, Coinbase's stock surged 10% in after-hours trading. "This is a sign of the times," said Dan Dolev, a senior payments analyst at U.S. investment bank Mizuho, "it means cryptocurrency stocks are entering the mainstream."

Coinbase became the first large crypto company to go public on a U.S. exchange four years ago through a direct listing. Despite the industry facing a series of scandals and bankruptcies, including the collapse of the FTX exchange, Coinbase's stock has still achieved an approximately 260% increase over the past two years.

However, the company's stock has performed poorly recently, falling about 17% this year, in stark contrast to Bitcoin's nearly 10% increase. In the first quarter, the company's revenue grew approximately 24% year-over-year but declined about 10% compared to the fourth quarter. Meanwhile, net income dropped 94% to $66 million, primarily due to Coinbase adjusting the valuation of its cryptocurrency holdings to market prices.

David Schassler, head of multi-asset solutions at VanEck Investment Management, stated, "This is a strong signal that digital assets are firmly entering the financial mainstream. It reflects a broader shift in traditional markets beginning to recognize and integrate crypto infrastructure."

Bitcoin ETFs and More Mainstreaming of Crypto Assets?

Before the announcement of its inclusion in the S&P 500 index, Coinbase announced plans to acquire Deribit, the world's largest Bitcoin and Ethereum options exchange, for $2.9 billion, marking one of the most significant acquisitions in the history of the cryptocurrency industry.

"You see all these SEC cases related to cryptocurrencies being rapidly dismissed. So, this is a very favorable environment," Dolev from Mizuho mentioned, "there seems to be no urgency to over-regulate, as the current government appears to be very friendly."

Coinbase's addition to the S&P 500 follows Bitcoin's breakthrough of the $100,000 mark, indicating that crypto assets are increasingly becoming part of the U.S. financial system. Large institutions have received regulatory approval to create spot Bitcoin exchange-traded funds, further advancing the mainstreaming of cryptocurrencies As cryptocurrencies continue to integrate into traditional finance, market participants will closely monitor the long-term impact on the entire industry, especially against the backdrop of Bitcoin reaching an all-time high and the Trump administration's friendly stance towards cryptocurrencies