Four years ago, crypto companies were striving to list on Nasdaq. Today, Coinbase stands atop the global capital markets. Once scrutinized by regulators and mired in controversies, the platform is now set to join the S&P 500—the world’s most influential stock index. This milestone reflects surging passive capital demand, accelerating institutional adoption, and a symbolic leap forward for the industry. A new era has quietly begun.
13 Years of Ups and Downs: Coinbase’s Rise to Mainstream Markets
From founding to S&P 500 inclusion, Coinbase’s journey spanned 13 years.
Launched on May 13, 2012, Coinbase began when Bitcoin was still an experimental currency among tech enthusiasts. Nine years later, on April 14, 2021, Coinbase debuted on Nasdaq under the ticker COIN, peaking at $429.54 on its first day and reaching an $85 billion market cap—a watershed moment for crypto.
Coinbase’s stock trajectory mirrors crypto market cycles. In 2022, amid a severe downturn, COIN plummeted to $33, logging an 86% annual drop. Recovery began in October 2023 as market sentiment improved.
Now, on its 13th anniversary, Coinbase makes history again: replacing Discover Financial Services as the first crypto-native company in the S&P 500. COIN surged 8% on the news, trading at ~$207 with a $52.78 billion market cap. The institutionalization of crypto is unfolding through its story.
👉 Why Coinbase’s S&P 500 inclusion is a game-changer
Profitability and Market Cap: Coinbase’s Hard Metrics
The S&P 500’s selection criteria require:
- Minimum $20.5 billion market cap
- Strong liquidity
- High free-float shares (95% for Coinbase)
- Recent quarterly profitability and positive cumulative earnings
In February 2024, Oppenheimer analyst Owen Lau predicted Coinbase’s eligibility, maintaining a "buy" rating and a $388 price target.
Per its Q1 2025 earnings (May 9):
- Revenue: $2 billion (down from Q4 2024’s $2.3 billion)
- Net income: $66 million (vs. $1.2 billion YoY)
- Five consecutive profitable months
Beyond Coinbase, S&P 500 already includes crypto-adjacent firms like Block, PayPal, and Visa. Notably, MicroStrategy (a major Bitcoin holder) joined the Nasdaq 100 in December 2023 and may qualify for S&P 500 post-2025 accounting updates.
Why Coinbase’s S&P 500 Entry Matters
1. Passive Capital Influx & Trading Volume Surge
Per Bitwise’s Juan Leon, COIN’s daily trading volume could 7x post-inclusion. Discover Financial’s 0.10% S&P weight implies ~$13.5 billion in passive demand—a tidal wave for COIN’s $1.85 billion average daily volume.
2. Accelerating Crypto IPO Momentum
Circle, eToro, Kraken, and others are advancing IPO plans. Key players:
- 2025 Q2 Potential: Circle, eToro, Gemini
- 2025–2026 Pipeline: BitGo, Consensys, Animoca Brands (targeting a $6 billion valuation)
👉 How Coinbase’s success fuels crypto IPOs
3. Mainstream Legitimacy for Crypto
Mizuho’s Dan Dolev notes: "This is a zeitgeist moment—crypto stocks are now mainstream." Coinbase’s inclusion signals regulatory and economic acceptance, paving the way for capital reshuffling and policy dialogues.
FAQs: Coinbase and the S&P 500
Q: How much passive investment will flow into COIN?
A: ~$13.5 billion, based on its projected S&P 500 weight.
Q: Will other crypto stocks follow?
A: Likely. MicroStrategy and Bitcoin ETFs are next in line for major indices.
Q: What’s the long-term impact?
A: Enhanced liquidity, reduced volatility, and deeper institutional adoption.
Coinbase’s S&P 500 debut isn’t just a corporate milestone—it’s a tipping point for crypto’s integration into global finance. As Wall Street’s "crypto FOMO" intensifies, the financial landscape is being rewritten.