Coinbase Attracts Billion Dollars of Fund Interest After S&P 500 Inclusion
Date: 2025-05-14 Author: Henry Casey Categories: BUSINESS
Investment firm Bernstein has calculated that index funds could direct about $9 billion to the acquisition of shares of the crypto exchange Coinbase after its recent inclusion in the S&P 500. In addition, active funds focusing on this index are expected to invest about $7 billion.
According to Matthew Siegel, head of digital assets at VanEck, the total demand for Coinbase shares could reach $10 billion. He noted that the company has quickly moved from a conflict with the SEC to recognition at the level of leading stock indices. Recall that earlier the regulator withdrew its claims against the platform.
Coinbase's current market capitalization is about $52 billion. At the same time, the company's share in the S&P 500, whose total value reaches $52 trillion, is about 0.1%. In the financial sector of the index, this share increases to 0.7%.
Bernstein gave a positive assessment of Coinbase shares, assigning a "buy" rating and setting a target price of $310 per share. This implies an increase of almost 50% from the market price recorded on May 12.
Analysts associate the company's favorable prospects with the course of the Trump administration, which actively supports the development of the crypto industry in the United States. In their opinion, Coinbase can become one of the key beneficiaries of these initiatives and "catch a tailwind."
Additional interest in the company is fueled by its recent actions. In March, Coinbase CFO Alecia Haas announced talks with the SEC regarding the possible launch of tokenized securities. In April, there were reports of the company's intention to obtain a federal bank license, and in May, it became known about a deal to acquire Deribit, the largest trading platform for bitcoin options. The deal amounted to $2.9 billion.
