Bernstein: Inclusion in the S&P 500 Could Result in $9 Billion of Passive Capital Inflows for Coinbase

Coinbase to be Included in S&P 500 Index, Analyst Predicts Billions in Capital Allocation

The American cryptocurrency exchange Coinbase will officially be included in the S&P 500 Index on May 19. Analysts from stock research and brokerage firm Bernstein believe that this move could bring billions of dollars in capital allocation to Coinbase.

Analysts led by Gautam Chhugani at Bernstein wrote in a report to clients on Tuesday, “First they fight you, then they include you in the S&P 500.” This statement refers to the “dramatic shift” in fate for Coinbase and the entire cryptocurrency industry. The analysts noted:

Coinbase currently has a market value of around $52 billion, representing 0.1% of the S&P 500 Index and 0.7% of its financial sector allocation. The total market value of the S&P 500 Index is approximately $52 trillion.

The analysts pointed out that Coinbase is the largest cryptocurrency exchange in the United States, with about 66% market share, managing over $400 billion in assets, and serving approximately 10 million active users. The company went public on the Nasdaq through a direct listing on April 14, 2021.

The analysts also mentioned that under Trump’s goal to make the United States the global capital of cryptocurrencies, including strategies like Bitcoin reserves, banks adopting digital assets, and legislation related to stablecoins and market structure, Coinbase remains a leading platform poised to capitalize on this bullish trend. Source

Related news: “Coinbase Exchange Stock Added to S&P 500 Components, Stock Price Surges Over 10% After-Hours”