Coinbase Stock Soars 12% on S&P 500 Inclusion—Wall Street Finally Notices Crypto Exists

Coinbase shares ripped higher today as the exchange secures its spot in the S&P 500—proving even legacy indices can’t ignore crypto’s trillion-dollar footprint anymore.

The move signals institutional validation, though cynics will note it’s about 14 years late to the party. Traders are now betting which crypto-native firm cracks the Dow next—assuming the 126-year-old index survives its own irrelevance.

Coinbase Stock Jumps

The S&P 500 is a coveted index for large companies opening up their stock to a broader investor base. It also provides exposure to passive funds that track the benchmark and actively managed funds that may have limitations on where they can invest.

Coinbase, the first major cryptocurrency company to go public in 2021, managed to report a profit for the last quarter, which is a requirement for inclusion in the S&P 500.

“This milestone represents what the true believers, from retail investors to institutional investors to our employees and partners, knew all along. Crypto is here to stay,” said Coinbase CEO Brian Armstrong.

He added two further thoughts: “Crypto is about to be in everyone’s 401 (k)” pension fund, and his goal is that in 5 to 10 years, “getting into the COIN50 index will feel as good as this.”

Two other thoughts:
1. Crypto is about to be in everyone’s 401k
2. My goal is that in 5-10 years, getting into COIN50 index will feel as good as this https://t.co/fXfk2tJ6g8

— Brian Armstrong (@brian_armstrong) May 12, 2025

Coinbase shares jumped 11% in after-hours trading on May 12, to come just below $230, according to Google Finance.

However, the firm’s shares have had a tough year, falling 41% since the beginning of 2025 as the TRUMP administration’s trade tariffs have torn through stock markets.

The S&P 500 climbed 3.2% on Monday as the recovery from its early April slump continues, but the index remains down 37% since the beginning of this year.

Disappointing Q1

Last week, Coinbase reported a disappointing first quarter, citing a fall in crypto prices alongside the broader market, due to tariffs and economic uncertainty.

The crypto exchange reported a net income of $65.6 million, down from $1.18 billion a year earlier. However, revenue was up 24% to $2.03 billion from $1.64 billion in the same period a year ago.

Coinbase also announced plans earlier this month to buy Dubai-based crypto derivatives exchange Deribit for $2.9 billion in the largest crypto industry deal to date.