Coinbase shares surged 24% on Tuesday after the crypto exchange was officially added to the S&P 500, replacing Discover Financial Services. This milestone not only boosts investor demand through index-tracking funds but also signals growing mainstream acceptance of crypto.
The rally comes after a volatile start to the year, with Coinbase stock previously hit by Trump-era trade tariffs. Despite the rocky road, the stock is now up 3.5% for 2025.
Politically, Coinbase has emerged as a major force, donating over $75 million to pro-crypto candidates in the 2024 election, with CEO Brian Armstrong contributing $1.3 million personally. The Trump administration has taken steps to support crypto, but legislative progress has slowed amid controversy over Trump’s crypto dealings.
Coinbase earned its place in the S&P 500 by reporting a $65.6 million Q1 profit and a 24% revenue increase to $2.03 billion. The company also announced a $2.9 billion deal to acquire Deribit, a Dubai-based crypto derivatives exchange—the largest in the industry’s history—as it pushes for global expansion.
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