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Coinbase (COIN) stock surged nearly 24% on Tuesday as Wall Street cheered the inclusion of the first and only crypto exchange in the S&P 500 (^GSPC) — a major milestone for the company and an industry once in the crosshairs of regulators.
"Coinbase has gone from being in an intense litigation with the SEC just a few months back (later dropped by the SEC under the Trump regime) to being the latest addition to S&P 500," Bernstein managing director Gautam Chhugani wrote on Tuesday morning.
"This event symbolises the dramatic turnaround in fortunes for the crypto industry and its rising significance as the frontier of financial innovation," he added.
The significance of formally joining the S&P 500 on May 19 was not lost on company executives either.
"This is a major milestone, not just for Coinbase, but also for the entire crypto industry," wrote Alesia Haas, Coinbase's CFO, on Monday afternoon. "Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading."
The announcement came days after Bitcoin (BTC-USD) crossed the $100,000 level to reach its highest level since late January.
The cryptocurrency has rallied since President Trump won the White House last year and put in place key figures to forge ahead with a token-friendly framework, a promise on which he campaigned.
One of those moves included placing cryptocurrency advocate Paul Atkins at the helm of the SEC after Gary Gensler stepped down on Jan. 20.
In late February, Coinbase announced the SEC had agreed to drop its enforcement case against the company.
Under Gensler, the agency had charged Coinbase with operating as an unregistered national securities exchange, broker, and clearing agency.
Coinbase shares rallied to all-time highs in December, surging 90% since Trump's election. The stock declined to pre-election levels in April as the overall market sank following Trump's tariff policy unveiling.
Year to date, Coinbase shares are up more than 3%.
Bernstein has a Buy rating on the stock with a $310 price target. The analysts point to the crypto exchange's $320 billion in assets with around 10 million active users.
"With the Trump Administration’s aspiration to make America the ‘crypto capital of the world’, Coinbase remains the dominant platform (66% U.S market share) to ride the tailwinds," wrote Chhugani.
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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