Cathie Wood, CEO of ARK Invest, has praised innovation-centric companies such as Coinbase, Tesla, Palantir, and Shopify for spearheading the evolution of both blockchain technology and traditional equity markets.
Speaking on May 14, Wood noted that these firms are not only advancing tech-driven change but also challenging and reshaping the conventional benchmarks that investors have long relied on. “Benchmarks will likely have to adapt to innovation more swiftly in the years ahead,” she emphasized.
ARK’s Long-Term Faith in Coinbase
ARK analyst Frank Downing also reflected on ARK’s early investment in Coinbase, revealing that he had co-authored a whitepaper with the exchange back in January 2017, well before its Series D round at a $1.6 billion valuation. Downing commended Coinbase for its rapid pace of product innovation and its effectiveness in onboarding new users, highlighting it as a prime example of digital evolution in action.
Wood echoed this sentiment, emphasizing that Coinbase and other innovators are altering not only the way companies perform but also how we measure performance through indexes and benchmarks.
Coinbase Joins the S&P 500: A Turning Point for Crypto
In a landmark development for the cryptocurrency industry, Coinbase Global (COIN) has been added to the S&P 500 index, replacing Discover Financial, which Capital One recently acquired. The change will officially take effect on May 19, 2025, and marks the first time a digital asset company has entered this prestigious benchmark.
Following the announcement, Coinbase shares surged nearly 15% on May 13, adding over $8 billion to its market value and pushing the stock to its highest point in nearly three months.
According to Oppenheimer analyst Owen Lau, this inclusion is not only monumental for Coinbase but also signals a broader shift: “It’s a model for other crypto firms aiming to enter mainstream financial indices.”
Institutional Impact and ARK’s Bullish Outlook
In response to the S&P inclusion, Oppenheimer raised its price target for Coinbase to $293, citing increased institutional interest. Funds that mirror the S&P 500 are now obligated to allocate to Coinbase, creating a new wave of demand for the stock.
Despite reporting a decline in Q1 earnings, analysts believe Coinbase is well-positioned to benefit from a rebounding crypto market. The company has also ramped up its focus on institutional onboarding and global expansion, solidifying its position as the world’s largest publicly traded crypto exchange.
ARK’s prior research aligns with this bullish outlook. In a 2023 report, Cathie Wood projected the S&P 500 could reach 6,400 in five years (base case) and 11,200 in a bull case, citing exponential technological growth as the main driver.
Crypto Gaining Ground Post-Regulatory Shift
The move also comes amid growing institutional enthusiasm for crypto, bolstered by President Donald Trump’s regulatory promises to ease financial rules, potentially accelerating blockchain adoption across sectors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
