Strategy co-founder Michael Saylor has congratulated Coinbase on its inclusion in the S&P 500 index.
“A major milestone for Coinbase and for Bitcoin,” Saylor said on the X social media network.
Coinbase has become the first cryptocurrency company to join the flagship index with a combined market cap of roughly $50 trillion.
Katie Haun, CEO and founder of Haun Ventures, has also commented on the significance of the milestone.
“The S&P 500 is one of the most widely followed benchmarks in the world. Having a crypto-native company represented at that level is a big moment for the industry,” Haun said.
As noted by VanEck’s Matthew Sigel, the S&P 500 index tends to act as the ultimate magnet for passive flows. He has estimated that index funds will be the buyers of at least $10 billion worth of Bitcoin.
The index, which was introduced all the way back in 1957, aims to track the 500 biggest companies in the U.S. There are some strict requirements for the companies that want to be invited to join the index. Some key factors that determine eligibility include market capitalization, liquidity, sector representation, as well as financial viability.
Coinbase has replaced Discover Financial Services, the digital banking and payments services company, within the highly prestigious index.
It is also worth noting that Strategy also joined the tech-heavy Nasdaq-100 index last year, but the largest corporate Bitcoin holder is unlikely to join the S&P 500 anytime soon.