Coinbase Launches COIN50 Index, Crypto Market’s S&P 500 Equivalent

Publicly traded company Coinbase has launched an equivalent of the crypto market’s S&P 500 Index. Dubbed Coinbase 50 (COIN50) Index, this new product represents the top 50 digital assets listed on its exchange that meet the index’s fundamental criteria for inclusion. The product marks the new strategy for Coinbase to boost its influence in the broader market.

VanEck and COIN50 Index – What is Special?

COIN50 is the result of the collaborative effort of the American cryptocurrency exchange and VanEck’s Market Vector. According to Matthew Sigel, Head of Digital Assets Research at VanEck, the index applies a fundamental filter to the selection process to ensure investability, thereby adding an extra layer of rigor.

Coinbase described the new index as a whole new way to track the performance of the crypto economy. Generally, it will help traders to better understand how the market is performing. Recently, there has been a massive influx of Wall Street players into the crypto market. As the broader ecosystem is evolving, Coinbase is making effort to transcend alongside by upgrading its offering.

It is expected that the index serve as a reliable measurement that accurately shows the growing size and diversity of the market. In no distant time, the exchange plans to add support for COIN50 Index perpetual futures. A post on X stated that the opening of the COIN50-PERP market will commence on or after 2:30pm UTC on November 12, 2024.

This perpetual futures market will be available with up to 20x leverage.

COIN Stock in This Bull Market Rally

Coinbase made this move in the middle of a broad bullish market. Following the outcome of the just concluded United States election, Republican presidential candidate Donald Trump won as he bagged the bigger share of the votes. The news of an incoming pro-crypto leader has sent excitement across the market, fueling multiple price rallies for digital assets.

Bitcoin  price is close to $90,000 and analysts are beginning to see it hit $100,000 before the end of November. Ethereum (ETH) has equally gathered momentum and is hoping to hit $4,000. This rally is not limited to crypto assets as Coinbase stock (COIN) has also surged by a significant percentage.

On November 11, the shares registered a jump of over 20%, surpassing $300 for the first time since 2021. At the time of this writing, COIN traded for $318 after a more than 62% growth in the past month.