Coinbase's inclusion in the S&P 500 could trigger significant changes for the company and the entire cryptocurrency market.
Impact on Coinbase
On May 12, it was officially announced that Coinbase would join the S&P 500, replacing Discover. Bernstein analysts forecast this could lead to up to $9 billion in passive purchases from index-following funds. This capital influx strengthens Coinbase's position as a key asset for institutional investors.
Stock Revaluation
The projected $9 billion capital influx related to Coinbase's entry into the S&P 500 raises questions about stock revaluation. Purchases driven by index funds are based on index replication, which may lead to structural revaluation, similar to what happened with Tesla after its inclusion.
Strategic Risks
While participation in the S&P 500 opens financial opportunities, it also poses several strategic questions for Coinbase. Increased attention from traditional markets may force the company to make more cautious decisions. Key risks include message standardization, a reduction in risky innovations, and alignment with American regulatory standards.
Coinbase's entry into the S&P 500 is a landmark event for the crypto market, but it could also limit the company's strategic freedom. With this new influx of capital, questions arise about Coinbase's ability to maintain its flexibility in the face of increasing regulation.
