Coinbase to Join S&P 500, Shares Rally: ETFs to Buy

Core Insights - Coinbase Global (COIN) will enter the S&P 500 Index on May 19, replacing Discover Financial Services, leading to a 24% increase in its stock price, the largest rally since the day after President Trump's election victory [1] - Coinbase is the first digital asset company included in the S&P 500, indicating a growing acceptance of cryptocurrency firms in mainstream finance [2][3] - Analysts predict that Coinbase could attract up to $16 billion in capital inflows due to its S&P 500 inclusion, with Oppenheimer raising its price target for Coinbase to $293 from $269 [4] Company Performance - Coinbase reported earnings per share of $1.94 for Q1 2025, exceeding estimates by 4.9% and showing a year-over-year increase of 7.6%, while revenues grew 24% year-over-year to $2.0 billion but missed estimates by 4.1% [6] - The potential acquisition of Deribit for $2.9 billion is expected to enhance Coinbase's growth and profitability, positioning it as a leader in crypto derivatives [7] Investment Opportunities - Several ETFs provide exposure to Coinbase, including: - First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT), with Coinbase holding a 17.8% share [8] - Global X Blockchain ETF (BKCH), where Coinbase accounts for 12.5% of the assets [11] - Fidelity Crypto Industry and Digital Payments ETF (FDIG), with Coinbase at 13.7% [12] - iShares Blockchain and Tech ETF (IBLC), which includes Coinbase among its 36 stocks [14] - Bitwise Crypto Industry Innovators ETF (BITQ), where Coinbase holds a 10.2% share [16]