Huge news in the after hour markets today as the S&P 500, a benchmark index, announced that Coinbase would be added. This change will officially take place before the trading day on May 19th (next Monday). After this announcement the stock soared and was up over 10% after hours.
The reason that this is huge is there are multiple large institutional funds that require S&P 500 stocks be included or even only exclusively hold them. Hence an additional upward pressure on the stock as these funds will be required to purchase. For the year Coinbase is down 17% and has had kinda meh numbers however they have announced some key acquisitions. We all know what Bitcoin has been doing this year with it up over double digits so it will be interesting to see if this could serve as a catalyst to drive Coinbase even back up to its beginning of the year level.
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