CandleFocus

First Bitcoin Holder Might Enter S&P 500, And It's Not MicroStrategy

Author: Content Editor
Matthew Sigel, head of digital assets research at VanEck, believes that Block (formerly Square) has the potential to become the first Bitcoin holder to be included in the S&P 500 stock market index. In order to be eligible for inclusion, companies must meet criteria such as having a market cap above $18 billion, public ownership above 10%, profitability in the previous quarter, and being domiciled in the U.S. Block has fulfilled these criteria after reporting their earnings for 1Q24. However, the decision to include a company in the S&P 500 is at the discretion of the Index Committee. Block bought $50 million of Bitcoin in October 2020 and an additional $170 million in February 2021. CEO Jack Dorsey is a known supporter of Bitcoin. Despite MicroStrategy being added to the Nasdaq-100 index, it is unlikely to be included in the S&P 500. The S&P 500 inclusion committee may block the addition of a stock even if it qualifies. Bitwise predicted that Coinbase would be included in the S&P 500, but Sigel believes Block would be a less controversial pick.

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