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In his first interview after the May 12 announcement that Coinbase will join the S&P 500, CEO Brian Armstrong called it a milestone for both the company and the whole crypto industry. While on air, Armstrong stated, “We’re very happy to be included in the S&P 500. It now means that crypto is here to stay.”
Coinbase, the largest U.S.-based cryptocurrency exchange, will officially be added to the S&P 500 index before markets open on May 19, replacing Discover Financial Services due to its merger with Capital One.
The S&P 500 tracks the 500 most valuable companies in the U.S. Coinbase's inclusion in the index is indicative of the increasing acceptance of digital assets into traditional finance.
Armstrong added that inclusion means crypto "is going to be a part of everybody's 401(k)," alluding to how a large number of retirement funds in existence track the index and will come to possess Coinbase shares.
A 401(k) is a U.S. retirement savings plan sponsored by an employer that allows employees to contribute a portion of their salary before taxes. These contributions are often invested in mutual funds, stocks, or ETFs to grow over time.
He also thanked Coinbase’s employees, investors and loyal customers for bringing the company this far.
Coinbase became publicly traded in 2021 and has increasingly acted as a bridge between crypto and traditional finance. Its entry into the S&P 500 is an indicator that digital assets, though no longer dominating headlines, are no longer something on the periphery, but rather a part of finance.
Bernstein predicts that Coinbase's S&P 500 listing will result in $16 billion in capital inflows.