Last week, Coinbase joined the S&P 500, one of the most stock indicators in the world – a victory for the encryption company, which spent most of the twenties of the twentieth century and is fighting US government agencies such as the Securities and Stock Exchange Committee.
But this collection is not related to one company alone.
“This is more than just an achievement for Coinbase, it is a teacher of the encryption industry and the broader bloc,” said Merim Habibi, Bitpace’s chief revenue official. Coinbase does not boost joining the S&P 500 with the largest encrypted currency exchange in the United States. “It enhances the legitimacy of the entire class category,” she said to Cointelegraph.
Jason Kenard, head of business development at ARK Invest EUROPE, told Cointelegraph that for the first time, an encrypted original company had faced profitability, liquidity and strict CAP “the most famous measurement index” in global markets, adding:
It sends a strong signal to institutional investors: The encryption infrastructure has matured into a systematic and reliable part of the financial ecosystem.
It is an event of teacher, Steve Sosnik, the chief strategy in interactive intermediaries, told Cointelegraph, “Because whether they want it or not, or do not know that, the stock investors who buy the S&P 500 index will now be exposed to coding across the currency.” In fact, Coinbase can now get billions of dollars from negative investors only to become part of the S&P 500.
“What is noticeable in this matter is that only a few months ago, the company was involved in an intense legal battle with the Supreme Education Council, which was charged that its platform was illegal because it was running away in unregistered securities,” He said CNBC.
“This normalizes exposure to encryption in the conservative portfolios that may avoid digital assets” and brings with it indirect adoption by institutional investors, retirement plans and sovereign funds that have wider importance in the industry, Al -Habibi added.
However, it was only a matter of time before some Rhodes, coach professor of financial management at Kelly Indianapolis College at Indiana University, told Cointelegraph, the encryption company to S&P 500 Fold. “It makes sense to be COIN or some other encoding companies in the index, as the industry has become more important to the global economy and wants the S&P 500 components to represent the economy.”
Separately, Coinbase also I mentioned Data breach last week, “a compromise of the passwords or special keys” that may eventually cost the encryption of $ 180 million to $ 400 million.
Disclosure of penetration on the personal information of tens of thousands of users and left them exhibition To robbery and kidnapping, as it appears in the wake of the violation of the professor’s book for the year 2021.
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Meanwhile, the inclusion of the S&P 500 index means that “the index boxes, including Blackrock, Vanguard, and State Street boxes, must now allocate capital to Coinbase”. “This means that billions of dollars of negative investment will flow into an original encrypted work.”
10 billion dollars in new capital flows?
How much money can the coinbase road flow? Passive investment (for example, investing in circulating investment funds that reflect the S&P 500) in recent years. S & P Djii estimated In 2024, it now tracks about 10 trillion dollars negatively.
If Coinbase gets only 0.1 % weighting – a stake thinking is reasonable – you can make $ 10 billion of potential capital flows without choosing one investor active in exposure to encryption.
It can be said that institutional acceptance is the biggest story here, and continue my love. Coinbase in the index indicates that public markets are now not only equivalent to growth, but organizational compliance, operational maturity and long -term vision in the encryption space. She added:
This step paves the way for other encryption companies-for example, circle, chain, fire rope-to the aim of the general lists and ultimately insert the index, which may lead to a new wave of institutional core financing companies.
It may be too early to talk so far about the convergence of the economic sectors of encryption and tradfi, as some do. “In general, it is still a very small part of the public economy,” said Siung Kim, assistant professor at Santa Clara University. “I think the next largest rapprochement will increase the adoption of Blockchain -based protocols and the distinctive symbol.”
The convergence of economies?
Others do not agree. “We have talked about Trafi-Crypto’s rapprochement for some time,” Owen Lao, Openheimer & Co Executive Director, told Cointelegraph. “It happens and will continue to happen.
“We are not completely rapprochement, but we definitely exceeded the stage of separation,” Kenard said. He has also indicated that the investment funds circulated in Crypto, but also referred to the recent events, such as the Galaxy Digital menu on the Nasdaq Stock Exchange this month and the role of Coinbase as a multi -ETF qualifier, indicates that Trafi is now looking forward to encrypted companies for some construction needs. “The organizational clarity is still arising, but the institutional bars are rapidly placed,” Kenard said.
More stock lists means that encryption companies can benefit from the market as a source of liquidity, but this does not necessarily involve the convergence of financial channels, Sosnick reported to interactive brokers. “The rapprochement will occur when the traditional financing company truly adopts encryption as a payment method.”
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However, Habibi pointed to the rapprochement of infrastructure solutions, such as the JPMorgan platform that is used to settle billions of dollars in ribo transactions during the day using Blockchain technology, and Nasdaq Asset Asset Bassetructure Launch and Careper Crypto.
“These examples emphasize the transformation in which the encryption and Trafi are no longer competitors. “
Who is the next?
Now that Coinbase has cut the ground, does one have to expect other encryption companies to get the S&P 500, including soon? Maybe not.
A large market capitalization is needed to join the S&P 500, but this alone is not enough. There are other criteria. The candidate should be profitable in the last and quarterly year to qualify, for example. “Galaxy Digital recently included [on Nasdaq]but [it still] Kenard said: “Kenard needs consistent profitability,” Marathon platforms, riots and strategy are often mentioned, but it may be early in their journey. ”
He said that Lao did not expect any of the original encoded companies to join the S&P 500 anytime, although this could happen in the next two years to three years. Gameds, “I will not go further say, it’s the beginning of multiple encryption companies that join the S&P 500, because new members often replace a company in the same industry-in this case, replaced Coin Discover Financial.”
The MSTR is a possible candidate. It easily has the necessary market value, but it is struggling to meet the indicator’s profit requirements. Kim said: “I don’t see Mstr making pieces.”
“I am not sure who will be the next – even Gemini (still private) looks out of the reviews of the recent financing rounds,” Kim continued. “It is really difficult to access the S&P 500, so it is possible that we see the current S&P 500 companies adopt Blockchain/Crypto services increasingly before we see a real encryption company-which one has started as an encryption company-enter the index.”
He will tell the time, but for the time being, “I am not aware of any encryption companies with the maximum of enough market and consistent profits that meet the SPX standards.”
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