Coinbase (COIN.O) officially joined the S&P500 US stocks benchmark, paving the way for more institutional investment in the shares and signaling crypto's move towards mainstream finance.
Passive investment flows
“The company’s addition will position it to benefit from passive investment flows into funds that track the index…that will be required to purchase COIN shares to match the index,” Palmer wrote in a report. Meanwhile the analyst Gautam Chhugani of Bernstein, another brokerage, estimated the move could result in $16 billion of flows from passive funds and active investments combined.
Coinbase’s elevation to the flagship S&P500 is a clear sign that crypto is moving into the mainstream, which is the result both of the maturing market, and encouragement from the words and actions of the Trump administration. A lighter touch regulatory approach, the federal government’s moves to establish a strategic Bitcoin reserve, and the Trump family crypto activities are all feeding confidence in the US crypto market.
Market capitalization
That’s helped Coinbase achieve the necessary total share value and other metrics required to join the S&P500, where companies such as Apple, Nvidia and Microsoft trade places for the top spots.
However, it is not all plain sailing for Coinbase. It is currently under investigation by the SEC for allegedly misrepresenting numbers of users. And the exchange was the subject of a hack last week that could cost it up to $400m.
