Coinbase Becomes First Crypto Company in S&P 500 Index

• Coinbase makes history as the first crypto company in S&P 500 Index.

• Coinbase dominates the U.S. crypto market with a 66% share and $400B in assets.

• Coinbase is set to lead the crypto industry amid growing political and market support.

Coinbase has made history by becoming the first cryptocurrency company to be added to the S&P 500 Index. This is a significant milestone for Coinbase and the whole crypto industry. The S&P 500 is one of the major indicators of the state of the U.S. economy, and with its inclusion, crypto space is proving that it is being considered in the area of mainstream finance.

Coinbase Dominates U.S. Market with 66% Share

Over the last few months, the crypto industry has experienced a number of positive changes. First, there was a pro-crypto federal government chosen. Then, both Bitcoin (BTC) and USD Coin (USDC) managed to set new all-time highs. Now, the addition of Coinbase to the S&P 500 is also being perceived as another step. This is an accomplishment of the maturity of the industry over the years.

Chief Financial Officer of Coinbase, Alesia Haas, thanked and was proud. She said that the journey was not easy; however, everyone at Coinbase worked hard to get to this point. Further, she thanked her customers, partners, builders, and employees for their continued support. According to her, this honor belongs to each person who believed in the strength of crypto.

At the same time, there are still critics with concerns. They fear more competition in the crypto world and the pressure on Coinbase’s fees. However, analysts feel that these concerns lose the bigger picture. They note that the global crypto market is turning back to the U.S. This “great American homecoming,” as they put it, is growing the market that Coinbase could reach.

Nowadays, Coinbase is already the biggest crypto exchange in the U.S. It has roughly 66% market share in terms of asset under custody of over $400 billion. The platform has about 10 million active users as well. It had made its Initial public offering on the 14th of April 2021, through direct listing on the Nasdaq exchange.

Coinbase Poised to Lead Crypto Industry Amid Growing Support

The political landscape is also turning for the better when it comes to digital assets. President Donald Trump has been vociferous in supporting the drive that sees America become the world leader in crypto. His plans will include the development of a Bitcoin Strategic Reserve, promoting the use of digital assets in banks, and advocating for the regulation of stablecoins and the market. This has made analysts believe that Coinbase is well placed to take advantage of these “tailwinds.”

Apart from its inclusion in S&P 500, Coinbase is also about to make a huge business move. The company has decided to buy one of the world’s leading crypto options exchanges, Deribit. This deal costs an estimated $2.9 billion. It consists of $700 million in cash and 11 million shares of Coinbase Class A shares.

The acquisition is, however, grant-dependent on approvals by the regulators and conclusive agreements. This deal could be a game-changer if it were successful in enhancing Coinbase’s global presence, notably in the crypto derivatives industry.

Finally, the entry of Coinbase into the S&P 500 does not only mark a win for the company but also for the digital asset industry. It is a demonstration that crypto will not go away as a passing trend but that it is here to stay and become one with the financial system. Coinbase seems to be strongly positioned to lead the way in the fast-evolving industry.