After recent Bitcoin upswing: Coinbase joins the S&P 500
Shares in the crypto exchange Coinbase will be traded in the renowned S&P 500 index from next week. However, they are far from their high.
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The shares of cryptocurrency exchange Coinbase are to be included in the renowned S&P 500 index after the shares of financial services provider Discover Financial were dropped due to an impending takeover. This was announced by those responsible for the share index on Monday. The move is to be completed on May 19, i.e., on Monday of next week. Following the announcement, Coinbase shares made a noticeable leap upwards. Experience has shown that inclusion in the S&P 500 leads to an increase because equity funds that track it begin to pick up the shares. From the tech sector, DoorDash, Dell, Palantir, Supermicro and CrowdStrike recently slipped into the index.
Up and down with the Bitcoin price
Coinbase is now included despite the continuous ups and downs of its shares, which are closely linked to the price performance of Bitcoin. Coinbase has been traded on the stock exchange since April 2021, with shares peaking in fall 2021 at a price of well over USD 300. However, the following year saw a price slide and a long dry spell in which the shares traded for less than USD 50. Prices then rose again at the end of 2023 and the USD 300 mark was exceeded again at the end of 2024. Prices then fell again in the spring and, with a recent price of USD 207 per share, Coinbase is still well off its previous high.
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To be included in the S&P 500, a company must have made a profit in the most recent quarter, among other things, and a total profit must also have been generated in the last four quarters combined. Just last week, Coinbase announced its intention to acquire the Dubai-based crypto trading platform Deribit for a total of USD 2.9 billion. At the beginning of March, the US Securities and Exchange Commission closed a lengthy investigation against Coinbase concerning trading in allegedly unregistered financial products. At the end of April, legal proceedings were filed against the crypto exchange in the US state of Oregon.
(mho)
