Coinbase Joins the S&P 500 as Bitcoin and Traditional Finance Converge

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 14 May 2025

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

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Summary

Coinbase has officially become the first crypto company added to the S&P 500, signaling a new era of legitimacy for crypto in traditional finance. Meanwhile, Bitcoin's increasing acceptance is marked by Goldman Sachs ramping up client exposure, Galaxy Digital's upcoming NASDAQ listing, and Nakamoto Holdings going public. NLW explores how these developments underline a deepening convergence between digital assets and mainstream financial markets. Enjoying this content? SUBSCRIBE to the Podcast: https://pod.link/1438693620 Watch on YouTube: https://www.youtube.com/nathanielwhittemorecrypto Subscribe to the newsletter: https://breakdown.beehiiv.com/ Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.3	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:18.4	What's going on, guys? It is Tuesday, May 13th, and today we are talking about a major milestone
0:23.9	in the convergence of Bitcoin and traditional finance. Before we get into that, however, if you are
0:29.0	enjoying the breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to
0:33.0	dive deeper into the conversation, come join us on the Breakers Discord. You can find a link in the show
0:37.4	notes or go
0:37.8	to bit.ly slash breakdown pod. Well, friends, Coinbase is set to become the first crypto company in
0:43.6	the S&P 500. After the bell on Monday, S&P Global announced an update to their index, replacing Discover
0:49.7	Financial Services with Coinbase. The change will go live ahead of market open next Monday.
0:55.3	Alongside reaching a top 500 market cap, companies are required to be profitable in the past
0:59.6	quarter and over the previous year to qualify for inclusion in the index.
1:04.0	Coinbase has now strung together six consecutive quarters of profitability, their longest
1:08.0	streak since going public in 2021. They're currently around the 190th largest
1:12.6	company in the U.S. with a market cap of $82 billion. That puts them around the same size as
1:17.4	Allstate, Robin Hood, and FedEx. They'll likely go into the index with a 0.1 weighting based on their
1:23.0	market cap. Coin-based stock jumped on the announcement, gaining 10% in after-hours trading.
1:28.7	Index inclusion typically comes with huge tailwinds as the index funds buy stock to get
1:32.4	up to weight in a price-insensitive manner.
1:34.8	As we've seen from previous inclusions like Dell, Palantir, and Super Micro, that tailwind
1:38.8	can persist as the company's benefit from passive index flows.
1:42.4	Still, while this is a big deal to Coinbase itself, it's an even
	...

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