Coinbase first crypto firm to join S&P 500

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Coinbase replaces Discover Financial Services, which is being bought by Capital One, later this month.

Shares in the Coinbase rose by 10% in pre-market trading on the news, which is likely to see the firm benefit from funds that track the S&P 500 adding its stock to their portfolios.

Since going public in 2021, Coinbase has proved a volatile stock and is well down on the year, reflecting the ups and downs of the crypto sector.

While the company is well placed to benefit from the Trump administration’s positive approach to crypto, it recently reported disappointing first quarter results, with a drop in profits.

Last week, it struck a deal to buy crypto options exchange Deribit for $2.9 billion.