Crypto Exchange Coinbase (Coin) is rushing into 16% early Tuesday after the announcement on Monday evening of its inclusion in the S&P 500.
Coin will be added to the S&P 500 index after the end of end on Friday, replacing Discover Financial Services (DFS) which is acquired by Capital One (COF).
The Wall Street Bernstein Wall Street brokerage estimates that this decision could lead to around $ 16 billion in purchase pressure for Coinbase – about 9 billion dollars from passive funds linked to S&P 500 and $ 7 billion from active allowances.
Coinbase is the “first and only crypto company to join the S&P 500”, wrote analysts led by Gautam Chhugani.
Chhugani has an outperformance note on Coinbase shares with a price target of $ 310, or about 30% over 30% compared to current $ 240.
The KBW investment bank estimates that the passive funds of S&P 500 will have to buy 36 million Coinbase shares for the inclusion of the index, or approximately 4 days of average purchase volume.
KBW also noted that on April 30, 9.9 million Coinbase shares had been detained, or 1.4 days to cover.
“Since 2017, the financial additions of 500 have outraged 5.2% the day after the announcement,” said KBW, and the addition of Coinbase could open the way to other cryptographic companies to reach the index.
Find out more: Coinbase shares increase by 8% on the inclusion S&P 500
