Coinbase Rockets 15% After Joining S&P 500

Coinbase stock jumped nearly 15% on Tuesday after it was announced that the crypto exchange will join the S&P 500 index , replacing Discover Financial, which is being acquired by Capital One. The change will take effect before markets open on May 19 . This marks a major achievement for the crypto sector, once viewed as an outsider in traditional finance. Analysts from Oppenheimer called it a “watershed moment” , saying it could inspire more crypto companies to go public and aim for similar milestones. Institutional interest in crypto has been growing, particularly with former President Donald Trump signaling a friendlier stance on crypto regulation. Oppenheimer raised its Coinbase price target to $293 , believing S&P inclusion will attract long-term institutional investment. The stock reached a three-month high , adding over $8 billion to Coinbase’s market cap. Inclusion in the S&P 500 is expected to drive more demand as funds tracking the index adjust their holdings. Despite a dip in first-quarter profit, analysts see potential for a rebound as the crypto market improves. Coinbase continues to grow its reach among institutional investors and internationally. Last week, it agreed to buy crypto options exchange Deribit for $2.9 billion , aiming to expand in derivatives. Analysts believe Coinbase still has the capital to make more major acquisitions, possibly targeting platforms like Polymarket .