Yes, Coinbase is now officially in the S&P 500. You read that right, a crypto company is now alongside Apple, Microsoft, and JPMorgan. Not long ago, people called crypto a scam. Now? Wall Street literally has to own it.
If you’re watching this space evolve or investing in it, this is definitely a “pause and think” moment. For many, it feels surreal. Remember when crypto was just “magic internet money”?
If you’re into crypto, investing, or finance, this is more than a fun headline. It’s a signal and change that we should embrace going forward. Let’s unpack why Coinbase joining the S&P 500 matters. We’ll look at what it says about the industry. And whether COIN stock is worth watching or investing right now.
🧠 What is Coinbase and Why Does It Matter?
In case you’re new to the space: Coinbase is the largest U.S.based crypto exchange.
It’s where millions buy, sell, and store crypto assets like Bitcoin, Ethereum, Solana, and even meme coins like Dogecoin. Think of Coinbase as the Nasdaq of crypto, but instead of stocks, people trade cryptocurrencies. What sets Coinbase apart is that it’s a regulated, public company that generally plays by the rules.
That’s why institutions prefer Coinbase over other global exchanges like Binance, OKX and Bybit. Coinbase isn’t just another trading app, it’s building the infrastructure for the crypto economy. With its own chain called BASE, Coinbase supports on-chain tools for developers and institutional custody solutions. It also powers staking services, stablecoin infrastructure, and Web3 access points across the ecosystem.
For many, Coinbase is the key on-ramp bridging traditional finance (TradFi) and the decentralized Web3 world.
📊 How’s Coinbase Actually Performing in 2024 and 2025?
After a brutal bear market in 2022–2023, Coinbase has made a strong comeback in 2025. While most crypto firms were struggling, Coinbase doubled down on compliance, infrastructure and it’s paying off.
Over the past 5 quarters, Coinbase has continued to remain profitable as it continues to expand on compliance and businesses. For 2025Q1, total revenue was $2.0 billion, down 10% QoQ. However, their balance sheet strengthened with $9.9 billion in USD resources.
Some may wonder how this compares to other similar tech companies. So we took some notable companies like Robinhood, Paypal to compare.
At a quick glance, Coinbase’s financials actually stack up well against those big-name companies. But here’s the real question: is their revenue growth sustainable. As seen, 2025Q1 revenue did take a small dip. That raises some eyebrows and fair questions from investors. Crypto Industry can be rather volatile, and Coinbase’s business and revenues still rides that wave.
🏦 What Coinbase Joining the S&P 500 Means
Being added to the S&P 500 isn’t just symbolic. It’s a practical game-changer for multiple reasons.
- Index Funds Now Own It: Massive funds that track the S&P 500 (like those from BlackRock, Fidelity, and Vanguard) now have to buy Coinbase stock. That brings in more long-term, passive investors.
- Pensions and Retirement Accounts Get Exposure: Without touching crypto directly, retirement portfolios now have a stake in this company.
- It’s a Signal to Wall Street: If there was still doubt about whether crypto is part of the financial system then that doubt’s gone. Coinbase is now a benchmark stock, not a niche play.
This isn’t just a win for Coinbase. It’s a milestone for the entire crypto industry. The S&P 500 is considered the most prestigious index in the U.S. and now, crypto has a seat at that table.
💸 Should You Buy $COIN?
So here’s the big investor question: Is it time to buy COIN? It depends on how you think about risk, but here’s the case for it:
- Crypto Exposure Without Holding Crypto: If you believe in the long-term future of crypto, Coinbase might be your best bet. You avoid managing wallets or dealing with complex regulations.
- Leverage to Industry Growth: If Bitcoin, Ethereum, and the broader Web3 space grow, Coinbase benefits. Furthermore, it is the go-to company for big US institutions who wish to have a stake in the space. It’s like owning the infrastructure that profits no matter which token wins.
- Improving Fundamentals: Unlike most crypto companies, Coinbase is now profitable. It has recurring revenue. It’s growing institutional relationships. It’s building real tools for developers.
But also: it’s still risky. Coinbase’s stock price tends to move with the crypto cycle. If Bitcoin drops 30%, COIN probably drops too. It is a high risk and high reward play. So if you’re investing, consider it is definitely a growth play and not a defensive one.
🔍 Final Thoughts: Crypto Is Entering the Financial Mainstream
Coinbase joining the S&P 500 is a full-circle moment for the crypto industry. They also recently acquired Deribit, a leading global crypto options exchange. This move strengthens Coinbase’s growing crypto derivatives business. Deribit brought in over $1 trillion in trading volume last year. This acquisition fills a gap in Coinbase’s offerings and expands their reach in crypto markets.
A decade ago, crypto was laughed at by Wall Street. Today, Wall Street has no choice but to own it. Coinbase didn’t just survive but it became the bridge between Web3 and traditional finance.
What comes next? Probably more crypto-native companies (E.g. Circle) going public. More integration with traditional banking. And more investors realize that crypto isn’t just speculation anymore but it’s part of the financial system.
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In addition, do check out our other latest articles. If you are keen, check out our articles on other analysis: Why is bitcoin > 110K and is this sustainable? and From Wall Street to Web3: How to Use Stock fundamentals for On-chain analysis on Crypto Projects