Coinbase Gains S&P 500 Slot, Shares Surge in Premarket

Published 1 hours agoCOIN

Coinbase Gains S&P 500 Slot, Shares Surge in Premarket

Coinbase Global Inc. is set to make a historical entry into the S&P 500 index on May 19, 2025, replacing Discover Financial Services as it gets acquired by Capital One. This move marks the first inclusion of a cryptocurrency exchange in the benchmark index, underscoring the increasing mainstream acceptance of the crypto sector within traditional financial markets.

Following this announcement, Coinbase shares surged nearly 10% in premarket trading, as reported by Reuters. Analysts interpret this development as a signal of the industry's growing legitimacy, further bolstered by President Donald Trump's favorable regulatory sentiment. In the wake of this news, Oppenheimer has raised its price target for Coinbase to $293, anticipating greater investor interest due to the company's S&P 500 inclusion.

Despite a drop in first-quarter profits, Coinbase has been strategically expanding its global presence and institutional investor base. It recently announced a $2.9 billion deal to acquire crypto derivatives exchange Deribit. While its shares have faced a near 17% decline in 2025, analysts believe that ongoing strategic acquisitions and the S&P 500 milestone could bolster its market standing, potentially adding over $5 billion to its market value if current trends persist.

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