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Leading brokerage firm Bernstein is very bullish on Coinbase (Nasdaq: COIN) following the announcement of its upcoming addition to the S&P 500.
Bernstein analysts led by Gautam Chhugani issued a note on May 13 as per which the Coinbase stock could witness as much as $16 billion in capital inflows — $9 billion from S&P 500-linked passive funds and $7 billion from active allocations.
Coinbase is the "first and only crypto company to join the S&P 500," and it is a “dramatic turnaround” for a company only until recently involved in a legal case with the Securities and Exchange Commission (SEC), the note mentioned.
The note also underlined the development as part of the broader trend of growing crypto legitimacy in the traditional markets.
Bernstein analysts doubled down on the earlier projection from mid-March, according to which the COIN stock could reach the minimum value of $310 with an "outperform rating."
Founded in 2012, Coinbase became a publicly traded company in April 2021.
The exchange is the largest crypto exchange in the U.S. that processes over $1.5 billion in average daily trading volume. It has over $320 billion in assets and caters to nearly 10 million active users each month.
Coinbase will join the S&P 500 before the market opens on May 19, replacing Discover Financial Services (DFS). The S&P 500 is a benchmark stock market index composed of large-cap tech companies.
COIN was exchanging hands at $248.22 at the time of writing, reflecting a rise of around 20% since the listing announcement.