COIN Stock Soars 23% Ahead of Coinbase’s May 19 Debut on S&P 500

Coinbase (COIN) stock is up by 2.94% in pre-market trading after posting a 23% gain on Tuesday, May 13. COIN stock has been on a steady rise this week after reports emerged that Coinbase will be included in the S&P 500 index on May 19, where it will join tech heavyweights like Apple, Microsoft, and Nvidia. COIN Stock Soars on S&P 500 Listing The recent gains in COIN stock price have led to Coinbase adding more than $15 billion to its market cap within three days, and the upward momentum will likely continue with the S&P 500 news. The inclusion of Coinbase in the index also marks a pivotal point for the exchange and the crypto industry, considering the strict requirements that companies have to meet to join the S&P 500. This includes having sufficient liquidity for six consecutive months and positive earnings in the last four quarters. Therefore, it is likely that COIN stock continues to extend gains in the coming weeks as investor confidence in the company strengthens. Crypto Community Hails “Major Milestone” Top voices in the crypto industry have reacted to the news around Coinbase stock joining the benchmark index. Michael Saylor, the executive chairman of US-listed Bitcoin-centric MicroStrategy, opined that having COIN on the S&P 500 was a “major milestone for Coinbase and for Bitcoin.” Last year, MSTR joined the MSCI World Index and Russell 1000. At the same time, the President of ETF Store, Nate Geraci, notes that Wall Street fund managers who have been shunning spot Bitcoin and Ethereum ETF products will be forced to allocate capital to COIN stock. He said, “Think about how many Vanguard investors will now own Coinbase. But they still can’t buy spot BTC or ETH ETFs on Vanguard’s brokerage platform. Vanguard is fighting a losing battle on this one.” Bitwise co-founder Matt Hougan also notes that the addition of Coinbase to the S&P 500 proves his thesis that the company has the highest chance of hitting a $1 trillion valuation in the future. Bitwise Forecasts $15B Inflows to Coinbase The head of research at Bitwise, Ryan Rasmussen, estimates that Coinbase stock will attract $15 billion in inflows from investors as it is the first crypto company on the S&P 500. He notes that these inflows will come from the $11 trillion in assets indexed on the S&P 500 from institutional funds, exchange-traded products, and derivatives. By being the first US company on the benchmark index, Coinbase also has have a first mover advantage, which will mirror the launch of spot Bitcoin ETFs. Therefore, it is likely for the COIN stock price to extend the rally and possibly outperform other US-listed companies this month. COIN Stock Price Analysis COIN stock price eyes further gains to the upside after overcoming strong resistance at the neckline of a head and shoulders pattern. If bulls can keep up the momentum that the rising RSI shows, the price may breach the $300 price level soon. Considering the bullish news around the addition of Coinbase stock on the S&P 500, further upside for this asset is likely. Moreover, an influx of inflows from institutions looking for indirect exposure to crypto may see the stock attract $15 billion in inflows per Bitwise estimates and record a massive surge in market cap. Frequently Asked Questions (FAQs) Coinbase stock is up by 23% after reports that Coinbase will be added to the S&P 500 index on May 19. The addition of Coinbase stock to the S&P 500 will have a bullish impact on COIN stock price. It will increase institutional inflows to the product. COIN stock can reach $300 after inclusion to the S&P 500 index as Bitwise estimates inflows to reach $15 billion. ✓ Share: muthoni Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/markets/coin-stock-soars-23-ahead-of-coinbases-may-19-debut-on-sp-500/