Bernstein Sees $16B Surge as Coinbase Joins S&P 500

The move follows Capital One’s acquisition of Discover Financial Services, creating room for the crypto giant in the benchmark index.

This development pushes Coinbase into the spotlight among traditional financial heavyweights. The listing comes at a time when Wall Street continues warming to digital assets despite regulatory uncertainty.

Massive Inflows Expected From Index Funds

Bernstein analysts project the inclusion could unleash $16 billion in demand for Coinbase shares. Passive funds tracking the S&P 500 may inject as much as $9 billion. Another $7 billion could flow in from active managers adjusting portfolios to reflect the new addition.

Analyst Gautam Chhugani noted that even a 0.1% allocation from active S&P 500 funds would generate multi-billion dollar buying activity. This rebalancing effect is a well-known phenomenon when companies join major indices.

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Crypto Giant Enters the Mainstream

With a market cap of $52 billion, Coinbase is expected to represent 0.1% of the entire S&P 500. Within the index’s financial sector, it could carry a 0.7% weight. The broader S&P 500 has a total value of around $52 trillion, underscoring Coinbase’s significant new exposure.

The move signals mainstream recognition for Coinbase and the broader crypto industry. As institutional adoption ramps up, its place in the index could boost credibility, liquidity, and investor access.

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