After almost exactly four years on the stock exchange, the time has come: Coinbase is joining the prestigious S&P 500. As of this Monday, the first crypto company is now listed in the world’s most-watched index. “This marks a turning point for Coinbase and the industry,” say market observers. The index committee's decision triggered a 15% jump in the stock price. And this may not be the peak yet—its inclusion could further increase demand for Coinbase, as funds tracking the benchmark index must now include the company in their portfolios. On top of that, Coinbase is making headlines with a multi-billion-dollar acquisition.
Step by step: Coinbase is not only doing well in the capital markets, but also operationally. Revenues more than doubled last year to USD 6.56 billion, and net income soared from USD 94.8 million to USD 2.58 billion. Trading volume also surged. While it stood at USD 468 billion the previous year, it rose to USD 1.1 trillion in 2024. The value of assets on the platform reached a substantial USD 404 billion as of December 31 — an increase of 111%. Bitcoin leads the pack, accounting for more than half of total assets and showing the highest growth rate. In second place in terms of growth is USD Coin (USDC). The share of the USD-pegged stablecoin held or managed in Coinbase’s digital wallets rose by 157%. In terms of volume, however, Ethereum ranks second behind Bitcoin, with just over 13% of total assets.
The start of the new year was mixed. While transaction revenue rose 17.3% to USD 1.26 billion from January to March, and subscription and services revenue climbed 37% to USD 698 million, profit surprisingly fell. This was primarily due to a significant increase in costs. Operating expenses jumped by just over half in Q1 to USD 1.3 billion. According to the company, this was mainly due to higher marketing expenditures and losses from operational crypto assets. The latter was influenced by U.S. President Donald Trump’s erratic trade policies, which increased volatility across all asset classes in the first three months of the year and triggered a sell-off in riskier assets like cryptocurrencies.
The situation has since calmed, and the industry’s largest crypto asset, Bitcoin, has even regained six-digit territory. Coinbase stock has followed suit, boosted further by its inclusion in the S&P 500. Additional momentum for the core business is expected from the USD 2.9 billion acquisition of Deribit in early May. The purchase of the derivatives exchange will not only expand the investor base but also give Coinbase a foothold in markets outside the U.S. — especially in Asia and Europe, where leveraged trading is more widespread. Deribit is the world’s largest trading platform for Bitcoin and Ether options and reached a trading volume of USD 1.2 trillion last year.
Experts believe consolidation in the crypto market may continue. After all, companies want to be well-positioned to benefit from President Trump’s stated goal of making the U.S. the global hub for cryptocurrencies. Despite the enthusiasm, prices in this sector are not rising in a straight line — high volatility continues to define this young industry. Coinbase stock has a historical 12-month volatility of 69.5%, compared to 16.1% for the S&P 500.
The high volatility also stems from the inherent risks of the crypto business — amely, cybercrime. Just days ago, it was revealed that Coinbase suffered damages of between USD 180 to 400 million due to a cyberattack. The company stated that account data of a “small group” of customers was stolen. To prevent such attacks in the future, Coinbase is opening a new support center in the U.S. and announcing additional security measures. Hacker attacks are not uncommon in the industry. According to a report by Chainalysis, total funds stolen from crypto platforms in 2024 amounted to USD 2.2 billion.
Those who don’t own cryptocurrencies directly but instead invest through structured products are not exposed to this kind of cyber risk. Two new soft-callable Barrier Reverse Convertibles (BRCs) from Leonteq offer an attractive way to invest in Coinbase. With a maximum term of one year, these products promise double-digit returns even if the stock merely stagnates or declines slightly. The coupons are an appealing 13.20% p.a. for the CHF version and 19.20% p.a. for the USD version. Unlike classic BRC structures, interest payments here are not guaranteed every quarter. For a partial coupon to be paid, the Coinbase stock must be above the coupon trigger level on each quarterly observation date. However, this threshold is set at a reassuringly low 50% of the initial price. If a coupon payment is missed, it is not lost but can be recovered thanks to the memory function—provided the stock exceeds the trigger level on a future observation date. If the barrier is breached, the final fixing determines the return. If the stock ends below the strike level, losses may occur. If it finishes at or above the strike, the full principal is repaid. Note: Every three months — but no earlier than six months — the issuer has the right to call both BRCs early at 100%.
While BRCs offer a relatively conservative way to invest in Coinbase, leverage products allow for more speculative strategies. Leonteq’s broad offering includes mini-futures and knock-out warrants on the crypto exchange, which allow for disproportionate participation. Both long and short positions are available. With this combination of leverage products and BRCs, profits can be achieved in all three market phases: rising, sideways, and falling.
We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: 058 800 11 11, email info@leonteq.com or contact us here.