Coinbase Global Inc. (NASDAQ: COIN) is set to become the first cryptocurrency company included in the S&P 500 index, effective before trading opens on Monday, May 19, 2025. The crypto exchange will replace Discover Financial Services, which is being acquired by Capital One Financial Corp.

The inclusion of Coinbase in the S&P 500 signifies a significant milestone for the cryptocurrency sector, reflecting its growing integration into mainstream financial markets. As a result, index funds and exchange-traded funds (ETFs) that track the S&P 500 will incorporate Coinbase shares into their portfolios, potentially increasing demand for the stock.

Following the announcement, Coinbase’s stock experienced a notable uptick, rising 8.8% in after-hours trading to $225.40. During the regular trading session, the stock closed at $207.22, up nearly 4% from the previous close. As of May 13, 2025, Coinbase’s stock price stands at $234.84.
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Coinbase’s addition to the S&P 500 comes amid a broader acceptance of digital assets in traditional finance. The company’s inclusion is expected to further legitimize the cryptocurrency industry and may pave the way for other crypto-focused firms to enter major financial indices in the future.

The S&P 500 is a market-capitalization-weighted index comprising 500 of the largest publicly traded companies in the United States. Coinbase’s inclusion reflects its substantial market capitalization and its role as a leading platform for cryptocurrency trading and services.

This development underscores the evolving landscape of the financial industry, where digital assets and traditional finance continue to converge.

BlackRock has updated its iShares Bitcoin Trust (IBIT) regulatory filing to include quantum computing as a potential threat to Bitcoin’s cryptographic security. This marks the first time the asset manager has explicitly acknowledged this risk in its ETF disclosures.

In the amended filing submitted on May 9, BlackRock cautioned that advancements in quantum computing could compromise the cryptographic algorithms securing Bitcoin and other digital assets. The firm stated that if quantum technology progresses significantly, it could undermine the viability of these cryptographic systems.

Quantum computing, an emerging field leveraging quantum mechanics, has the potential to perform complex calculations at speeds unattainable by classical computers. This capability raises concerns about the security of current cryptographic methods, which are foundational to blockchain technologies like Bitcoin.

BlackRock’s IBIT, the largest spot Bitcoin ETF with approximately $64 billion in net assets, has seen substantial investor interest since its launch in January. The firm’s inclusion of quantum computing in its risk disclosures underscores the importance of considering emerging technological threats in the evolving digital asset landscape.

While quantum computing remains in its developmental stages, BlackRock’s proactive disclosure reflects a broader industry awareness of potential future challenges to blockchain security. The move serves as a reminder for investors to stay informed about technological advancements that could impact the integrity of digital assets.

Ethereum’s native cryptocurrency, Ether (ETH), has experienced a significant surge in market capitalization, surpassing global giants Coca-Cola and Alibaba. This milestone comes in the wake of Ethereum’s successful implementation of the Pectra upgrade on its mainnet.

As of May 12, ETH’s market capitalization reached over $308 billion, positioning it as the 39th-largest asset globally. In comparison, Coca-Cola and Alibaba held market caps of approximately $303.5 billion and $303.7 billion, respectively.

The Pectra upgrade, deployed on May 7, introduced several enhancements aimed at improving Ethereum’s scalability and user experience.

Increased Validator Staking Limits: The maximum staking limit per validator was raised from 32 ETH to 2,048 ETH, streamlining operations for large-scale stakers.

Enhanced Layer-2 Scaling: The upgrade increased the number of data blobs per block, facilitating better scalability for layer-2 networks.Smart Account Wallet Improvements: Externally owned accounts (EOAs) can now function as smart contracts, allowing users to cover gas fees and payments using tokens other than ETH.

These advancements aim to bolster Ethereum’s infrastructure, making it more efficient and user-friendly for developers and end-users alike.

Despite the positive developments, cybersecurity experts have raised concerns regarding potential vulnerabilities introduced by the Pectra upgrade. Specifically, there is apprehension that attackers could exploit new transaction types to control EOAs without requiring users to sign on-chain transactions. This could potentially allow malicious actors to drain funds through off-chain signed messages.

Ethereum’s development community is actively monitoring the situation and working to address any security issues to ensure the integrity and safety of the network.The recent surge in ETH’s market capitalization underscores the market’s positive reception of the Pectra upgrade and Ethereum’s ongoing commitment to innovation and scalability.