Coinbase COIN shares surged 24% on May 13, 2025, — marking their biggest one-day gain since the day after Donald Trump’s election victory — following the announcement that the cryptocurrency exchange will be added to the S&P 500 Index, as quoted on CNBC. S&P Global stated late on May 12 that Coinbase would replace Discover Financial Services, which is being acquired by Capital One Financial.

Coinbase has solid exposure to exchange-traded funds (ETFs), such asFirst Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, Global X Blockchain ETF BKCH, Fidelity Crypto Industry and Digital Payments ETF FDIG and Roundhill COIN WeeklyPay ETF COIW.

Each of these ETFs invests more than 10% of its portfolio in COIN shares. No wonder, CRPT jumped 7.4% on May 13, BKCH gained by 6.8%, FDIG added 6.7% and COIW shot up 30%.

Companies added to the S&P 500 often experience a rise in their stock prices due to passive funds and ETFs that must purchase shares to track the benchmark index. To qualify for inclusion in the S&P 500, a company must be profitable both in its latest quarter and cumulatively over the previous four quarters.

Coinbase met those requirements with net income of $65.6 million in its latest earnings report, though down from $1.18 billion a year ago due to adjustments related to crypto valuations. Revenues rose 24% year over year to $2.03 billion.

Coinbase has been closely aligned with the return of Donald Trump to the White House. The stock soared 31% on Nov. 6, the day after the election, thanks to expectations that the new administration would take a more favorable stance toward cryptocurrency following four regulatory-heavy years under President Joe Biden.

However, Coinbase shares’ journey has been rough this year, with share drops of 26% in February and 20% in March, largely due to market uncertainty from Trump’s tariff announcements. Including Tuesday’s rally, the stock is now off by 0.1% so far this year.

The beginning of Trump’s new term has generally been positive for the crypto industry, with early steps including deregulation and an executive order to create a strategic Bitcoin reserve. However, legislation has yet to gain traction due to controversy surrounding Trump’s personal crypto dealings, including a meme coin project tied to his family.

Note that the broader crypto market is also booming. Bitcoin surged past $100,000 last week. This momentum has further lifted sentiment around Coinbase and other crypto-linked assets (read: Bitcoin Tops $102K for First Time Since January: ETFs in Focus).