Shares of Robinhood jumped about 7% in after-hours trading after the S&P 500 confirmed it will add the crypto-focused brokerage to the index on September 22. CNBC first reported the decision; advertising-tech firm AppLovin will also be added.
The move marks another sign of mainstream acceptance for companies tied to digital assets. Coinbase joined the S&P 500 earlier this year, beginning trading on the index on May 19, and recent easing in regulatory rhetoric has helped lift publicly traded crypto firms.
Not everything made the cut: the index did not add a Bitcoin treasury Strategy, disappointing some observers who had hoped the S&P would broaden exposure to direct bitcoin allocations within corporate portfolios.
Why this matters: index inclusion can boost visibility and liquidity — passive funds that track the S&P 500 typically buy shares of new additions, which often supports near-term price gains. For Robinhood, the listing raises its profile with both institutional and retail investors. For the broader crypto sector, it signals growing integration with traditional markets and may attract more capital.
Risk note: Inclusion in a major index is not a guarantee of sustained outperformance. Market volatility, regulatory changes and company fundamentals remain the main drivers of long-term returns, so investors should weigh these factors before making decisions.
Source: Decrypt. Read the original coverage for full details.