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Coinbase/COIN is replacing Discover Financial (ticker DFS will become inactive) in SP500 on 5/19/25. Change is necessitated by the acquisition of Discover Financial by Capital One/COF.
So, come next Monday, if you have a SP500 index fund (SPY, IVV, VOO, etc), you will also have some exposure to cryptos. Coinbase is a combo crypto exchange, broker-dealer and custodian.
Mr. Munger was definitely not a fan of cryptocurrency!
“'Sometimes I call it crypto crappo, sometimes I call it crypto sh—. It’s just ridiculous that anybody would buy this stuff,' Munger said at the annual shareholder meeting of Daily Journal Corp. on Wednesday. 'I’m not proud of my country for allowing this crap,' Munger added."
"A cryptocurrency is 'worthless,' he said, adding: 'It’s no good. It’s crazy. It does nothing but harm, and it’s antisocial.'”
"In his latest comments, Munger said he doesn’t think there are any good arguments against his position on digital assets. 'I think people who oppose my positions are idiots,' he said."
Discover/DFS is a financial with $50+ billion market cap. Looks like DJ/S&P Committee decided that a modern financial replacement with a similar market-cap is Coinbase/COIN.
At 0.10% weight, the nature of SP500 won't change. But this is great news in the crypto world. First, Bitcoin ETP, then Ether ETP, and now admission into SP500.
Dubai/UAE may be the crypto capital now. But the US is catching up fast.
As a publicly traded security, it has to comply to SEC reporting regulations. What are the outstanding risks to the market and investors of having Coinbase/COIN in S&P500 in the future?
Comments
Thanks Yogi
“'Sometimes I call it crypto crappo, sometimes I call it crypto sh—.
It’s just ridiculous that anybody would buy this stuff,' Munger said at the annual shareholder meeting
of Daily Journal Corp. on Wednesday.
'I’m not proud of my country for allowing this crap,' Munger added."
"A cryptocurrency is 'worthless,' he said, adding: 'It’s no good. It’s crazy.
It does nothing but harm, and it’s antisocial.'”
"In his latest comments, Munger said he doesn’t think there are any good arguments
against his position on digital assets. 'I think people who oppose my positions are idiots,' he said."
https://www.marketwatch.com/story/crypto-its-worthless-its-no-good-its-crazy-it-does-nothing-but-harm-and-its-anti-social-says-charlie-munger-af14f1f0
dAt 0.10% weight, the nature of SP500 won't change. But this is great news in the crypto world. First, Bitcoin ETP, then Ether ETP, and now admission into SP500.
Dubai/UAE may be the crypto capital now. But the US is catching up fast.