Coinbase Soars 24% After Becoming First Crypto Firm in S&P 500
Shares of Coinbase (Nasdaq: COIN) soared by $49.68 (23.97%) on Tuesday following news of its inclusion in the S&P 500 index. The crypto exchange will become the first pure-play cryptocurrency firm to join the prestigious index, replacing Discover Financial Services, effective May 19, 2023.
Coinbase's inclusion in the S&P 500 is seen as a significant milestone for the cryptocurrency industry. Cathie Wood, CEO of Ark Investment Management, acknowledged the move's importance for index-sensitive managers. Coinbase CEO Brian Armstrong stated that the company's inclusion signifies the permanence of cryptocurrency. Analysts at Oppenheimer raised their price target for Coinbase stock to $293, anticipating increased institutional investment due to the S&P 500 inclusion. Bernstein analysts projected up to $16 billion in capital inflows for Coinbase as a result of its S&P 500 entry.
In a related development, Coinbase announced an investment in Canadian stablecoin issuer Stablecorp. The investment aims to promote Stablecorp's fiat-collateralized stablecoin, QCAD. Stablecorp is a joint venture of 3iQ and Mavennet, and QCAD is relevant for institutional investors and financial service providers in Canada.
Coinbase's inclusion in the S&P 500 index has boosted investor confidence and is expected to attract more institutional investment. The company's investment in Stablecorp and its stablecoin QCAD further demonstrates Coinbase's commitment to expanding its offerings and supporting the broader cryptocurrency ecosystem.
