Robinhood Markets is set to join the S&P 500 on Sept. 22, replacing Caesars Entertainment in the index’s quarterly rebalancing.
The addition, announced Friday by S&P Dow Jones Indices, places another crypto-linked company in the U.S.’s most widely followed stock benchmark, further increasing its indirect exposure to digital assets.
“This move strengthens the index’s ties to the digital asset economy,” said Edwin Mata, co-founder and CEO of tokenization platform Brickken, in a statement to Cointelegraph.
“Although the S&P 500 does not directly hold cryptocurrencies, Robinhood’s role as a retail gateway to crypto allows the index to indirectly capture some of the sector’s growth and liquidity,” Mata noted.
Robinhood, Coinbase Add a Crypto Twist to the S&P 500
Robinhood’s entry into the S&P 500 puts it alongside Coinbase — which joined the index in May — making them the only two crypto-focused firms currently represented. Both serve as major gateways to digital assets, giving the benchmark index, and by extension passive investors, exposure to crypto.
“The addition of Robinhood to the S&P 500 highlights how crypto-related companies are now seen as core players in the U.S. market,” said Agne Linge, head of growth at decentralized onchain bank WeFi.
With Robinhood’s inclusion, all index funds and ETFs tracking the S&P 500 must add HOOD to their portfolios, funneling passive capital into the stock. However, that also brings potential for greater volatility.
“The inclusion of both Coinbase and Robinhood adds a degree of risk to the S&P 500, as both have high beta values — 2.89 for Coinbase and 2.36 for Robinhood,” Linge explained.
Beta measures an asset’s volatility relative to the overall market. While higher values imply bigger swings, Linge noted the upside: “It gives everyday investors in index funds, pension funds, and institutions indirect exposure to crypto through one of the most fundamental investment vehicles, the S&P 500.”
Cramer’s Take
CNBC’s Jim Cramer also weighed in, applauding Robinhood’s addition to the index and describing the company as a “juggernaut” that reshaped the retail brokerage industry.
He also pointed to Robinhood’s ongoing expansion beyond stocks, options, and crypto into areas like retirement accounts and credit cards. Cramer described the company as a rare disruptor — initially underestimated by Wall Street but now impossible to overlook. “It seemed to come out of nowhere, and it’s thriving,” he said.
