As Coinbase prepares to officially join the S&P 500 on May 19, CEO Brian Armstrong is already thinking several steps ahead – with two predictions that hint at where crypto could be heading next.
While the company’s inclusion in the index is a big moment for the digital asset space, Armstrong’s focus is already on what comes after, and how crypto could become even more embedded in everyday finance.
Thus, his first prediction is that cryptocurrencies will soon become a normal part of retirement savings, such as 401(k) plans. Since digital assets are becoming more popular among both regular and professional investors, he thinks they will become a go-to for diversifying portfolios over the long term.
The second idea looks further ahead. Armstrong thinks that in five to ten years, being added to the Coinbase 50 Index (COIN50) could be as meaningful as making it into the S&P 500 is today. The COIN50 tracks the 50 biggest and most liquid digital assets by market capitalization, using both fundamental and market eligibility screens to make sure it is a good investment.
You Might Also Like
Meanwhile, Coinbase’s upcoming entry into the S&P 500 marks a first step for the crypto industry to the same field, which includes major U.S. companies like Apple, Microsoft and Tesla, and S&P 500 widely viewed as a key measure of the overall economy.
The market reacted positively to the news, with Coinbase shares jumping 7% in over-the-counter trading. While the company did report a $200 million shortfall in Q1 revenue, user activity remains strong. USD Coin (USDC) balances on the platform, for example, rose 49% during the same period.
Additionally, Base-native cryptocurrencies saw an increase in value, with DEGEN, for example, skyrocketing 100% in just one day.