Category: Cryptocurrency News

Opinion by: Scott Lehr, adviser to Alteri.ioIn the world of cryptocurrency, knowledge isn’t just power — it’s a weapon. The recent collapse of Mantra’s OM token, which saw a 90% drop in value within hours, underscores how wallet intelligence can be leveraged with devastating effects.Wallet intelligence is the real-time analysis of blockchain data to extract insights from wallet behaviors, transaction patterns, and asset flows. Firms like Chainalysis and Arkham Intelligence have turned raw onchain activity into high-resolution surveillance, enabling everything from compliance monitoring to predictive trading. This level of insight gives a strategic advantage to those who can access it.Power like this, however, has consequences. There is a new battlefield on the blockchain, and you might be in danger.The downside of transparencyAs blockchain transparency advances, the pseudonymity that once protected users rapidly dissolves. Every transaction leaves a breadcrumb trail — one that sophisticated actors can follow. Wallet intelligence is increasingly used by regulators, exchanges, and analytics firms to enforce compliance and track illicit activity. It also opens the door to abuse: centralized surveillance, profiling, and preemptive censorship.OM’s collapse exposed the dangersThe April collapse of OM offers a case study of how these dynamics play out. Although not conclusively proven, reports suggest that a single trader initiated a massive short on Binance’s perpetual market, allegedly exploiting market liquidity to trigger a cascade of liquidations. At the same time, Mantra’s token was held in a highly centralized fashion — 90% of OM supply sat with insiders. Combine that with low liquidity and poor transparency around OTC deals, and you get a chain reaction that wiped out millions in market cap and investor trust.The FTX fallout and the power of wallet intelligenceWe saw echoes of this dynamic during the collapse of FTX. While regulators and internal auditors failed to sound the alarm, early warnings came from parts of the crypto community — analysts and observers who flagged questionable ties between Alameda Research and FTX. But the full extent of the misconduct wasn’t revealed until a leaked balance sheet and a cascade of withdrawals forced the truth into the open. After the collapse, wallet intelligence became critical. Blockchain investigators and independent sleuths traced the movement of billions in customer funds, exposing how deeply intertwined — and misused — those assets were. The fallout didn’t just destroy value. It shattered trust and proved that, in the right hands, blockchain transparency can uncover truths that centralized actors try to bury.The growing threat of surveillance capitalismThis is the new battlefield. Wallet intelligence enables actors to front-run movements, manipulate price action, or influence reputational narratives by selectively exposing wallet data. In the wrong hands, it becomes a weapon capable of destabilizing protocols, shaping regulatory pressures, or undermining the decentralization of crypto.What happens when blockchain data stops protecting users and starts profiling them?Recent: Mantra links OM token crash to risky crypto exchange policiesThe centralization of these tools and data pipelines poses a systemic risk. A small number of firms with privileged access and institutional relationships now have disproportionate influence over which transactions get flagged, which wallets get blocked, and which behaviors are interpreted as “suspicious.” That isn’t decentralization. It’s surveillance capitalism with a blockchain veneer.What the crypto community must do nowThe implications for markets are significant. As wallet intelligence tools become more influential, expect heightened regulatory scrutiny, targeted enforcement, and volatility driven by actors who can read the tape before the rest of the market sees it. In the wrong context, transparency without guardrails can morph into tyranny.Wallet intelligence is here to stay — but how it’s governed, who gets access, and whether it reinforces or undermines decentralization will determine whether it serves the ecosystem or destabilizes it.Blockchain users: Stop assuming decentralization means safety. Know how your data is being tracked, interpreted, and possibly weaponized.Regulators must understand this technology before attempting to regulate it—or risk empowering the wrong actors.Developers should push for decentralized wallet intelligence platforms that return data power to the network, not a few firms.Protocols should bake privacy into their architecture without sacrificing accountability.In this next era of crypto, what you don’t know about your own wallet might be exactly what someone else is using to move against you.Opinion by: Scott Lehr, adviser to Alteri.io. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Opinion by: Scott Lehr, adviser to Alteri.ioIn the world of cryptocurrency, knowledge isn’t just power — it’s a weapon. The recent collapse of Mantra’s OM token, which saw a 90% drop in value within hours, underscores how wallet intelligence can be leveraged with devastating effects.Wallet intelligence is the real-time analysis of blockchain data to extract insights from wallet behaviors, transaction patterns, and asset flows. Firms like Chainalysis and Arkham Intelligence have turned raw onchain activity into high-resolution surveillance, enabling everything from compliance monitoring to predictive trading. This level of insight gives a strategic advantage to those who can access it.Power like this, however, has consequences. There is a new battlefield on the blockchain, and you might be in danger.The downside of transparencyAs blockchain transparency advances, the pseudonymity that once protected users rapidly dissolves. Every transaction leaves a breadcrumb trail — one that sophisticated actors can follow. Wallet intelligence is increasingly used by regulators, exchanges, and analytics firms to enforce compliance and track illicit activity. It also opens the door to abuse: centralized surveillance, profiling, and preemptive censorship.OM’s collapse exposed the dangersThe April collapse of OM offers a case study of how these dynamics play out. Although not conclusively proven, reports suggest that a single trader initiated a massive short on Binance’s perpetual market, allegedly exploiting market liquidity to trigger a cascade of liquidations. At the same time, Mantra’s token was held in a highly centralized fashion — 90% of OM supply sat with insiders. Combine that with low liquidity and poor transparency around OTC deals, and you get a chain reaction that wiped out millions in market cap and investor trust.The FTX fallout and the power of wallet intelligenceWe saw echoes of this dynamic during the collapse of FTX. While regulators and internal auditors failed to sound the alarm, early warnings came from parts of the crypto community — analysts and observers who flagged questionable ties between Alameda Research and FTX. But the full extent of the misconduct wasn’t revealed until a leaked balance sheet and a cascade of withdrawals forced the truth into the open. After the collapse, wallet intelligence became critical. Blockchain investigators and independent sleuths traced the movement of billions in customer funds, exposing how deeply intertwined — and misused — those assets were. The fallout didn’t just destroy value. It shattered trust and proved that, in the right hands, blockchain transparency can uncover truths that centralized actors try to bury.The growing threat of surveillance capitalismThis is the new battlefield. Wallet intelligence enables actors to front-run movements, manipulate price action, or influence reputational narratives by selectively exposing wallet data. In the wrong hands, it becomes a weapon capable of destabilizing protocols, shaping regulatory pressures, or undermining the decentralization of crypto.What happens when blockchain data stops protecting users and starts profiling them?Recent: Mantra links OM token crash to risky crypto exchange policiesThe centralization of these tools and data pipelines poses a systemic risk. A small number of firms with privileged access and institutional relationships now have disproportionate influence over which transactions get flagged, which wallets get blocked, and which behaviors are interpreted as “suspicious.” That isn’t decentralization. It’s surveillance capitalism with a blockchain veneer.What the crypto community must do nowThe implications for markets are significant. As wallet intelligence tools become more influential, expect heightened regulatory scrutiny, targeted enforcement, and volatility driven by actors who can read the tape before the rest of the market sees it. In the wrong context, transparency without guardrails can morph into tyranny.Wallet intelligence is here to stay — but how it’s governed, who gets access, and whether it reinforces or undermines decentralization will determine whether it serves the ecosystem or destabilizes it.Blockchain users: Stop assuming decentralization means safety. Know how your data is being tracked, interpreted, and possibly weaponized.Regulators must understand this technology before attempting to regulate it—or risk empowering the wrong actors.Developers should push for decentralized wallet intelligence platforms that return data power to the network, not a few firms.Protocols should bake privacy into their architecture without sacrificing accountability.In this next era of crypto, what you don’t know about your own wallet might be exactly what someone else is using to move against you.Opinion by: Scott Lehr, adviser to Alteri.io. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin is headed towards its largest option expiry of 2025 at around $13.8B on May 30. Just a week earlier, the OG crypto crossed its previous high of $109K and made a new all-time high. However, over the past week, the prices have corrected by around 3%, meaning $BTC is now trading at around $108K. The battle between the bulls and the bears has gotten intense, and we expect a great tussle between the two to keep $BTC prices above $109K. In this article, we’ll provide a complete breakdown of the current Bitcoin option expiry scenario. We’ll also suggest the best crypto to buy now to benefit from $BTC’s potential rally. $109K Is a Crucial Level for $BTC Option data shows that the $109K level is the most crucial level for Bitcoin option traders. Out of the total options, $6.5B are put options. However, 95% of put options are below $109K. So, if $BTC stays above this level, 95% of these options will expire worthless, meaning they’ll lead to a loss for bears. Short sellers were already caught off guard by Bitcoin’s 25% rally in the last 30 days. Conversely, there are around $3.8B worth of call options up to $109K. This means that bulls will earn massive profit if $BTC holds above this level. Institutional data shows that there was a net flow of $1.9B Bitcoin ETFs between May 20 and May 22. This proves that corporations are still buying BTC above $105K. The only hope for bears at this point is a macroeconomic shock or news that could see Bitcoin tumble to a certain extent. It’s worth noting that there’s also an open interest of $79B in the Bitcoin futures market with a lot of short positions. This indicates that bears are trying their best to ensure Bitcoin doesn’t sustain the $109K mark come May 30. That said, the bulls seem to be more in control of the markets as of now. Here’s a table to help you understand. BTC Expiry Price Calls Puts Net Between $102K and $105K $2.75B $0.9B $1.85B – Call Side Between $105K and $107K $3.3B $0.65B $2.65B – Call Side Between $107K and $110K $3.7B $0.35B $3.35B – Call Side Between $110K and $114K $4.8B $0.12B $4.70B – Call Side As you can see, under all four scenarios, it is the bulls that ultimately benefit. The higher Bitcoin goes from here, the more profit bulls take home. With just seven days left in the month, one can expect a bit of volatility in the Bitcoin market. However, the bias is largely green, with experts having already predicted that $BTC might cross $200K by the end of the year. If you want to ride this potentially once-in-a-lifetime opportunity, here are some top altcoins you can invest in right now. 1. BTC Bull Token ($BTCBULL) – Best Crypto to Buy Right Now BTC Bull Token ($BTCBULL) stands out from other Bitcoin-inspired altcoins because it’s the only one offering free $BTC airdrops to its token holders. It’s the best crypto to invest in if you want to make the most of Bitcoin’s upcoming rally without having to shell out an eye-watering sum to invest in Bitcoin itself, which is currently priced at over $108K. Every time Bitcoin pushes through a new landmark, such as $150K, $200K, or $250K, for the first time, $BTCBULL holders will automatically receive their share of free $BTC. It’s worth noting, though, that you must store your purchased $BTCBULL tokens in Best Wallet. Additionally, the project will also follow a deflationary approach, meaning a part of the total token supply will be shaved off at regular intervals – every time Bitcoin’s price rises by $25K, to be precise. A continuously decreasing token supply will ensure the demand continues to increase, which will ultimately boost the token’s trading volume and price. To join the ‘Bull Army,’ buy $BTCBULL today. Luckily for you, the project is still in presale ($6.2M+ raised), meaning you can grab it for a low price of $0.002525. 2. Solaxy ($SOLX) – First-Ever L2 on Solana with $40M in Presale Funding Solaxy ($SOLX) is one of the best crypto presales on the market today, and for good reason. After all, it’s set out to resolve Solana’s congestion and scalability issues. After the successful launches of $TRUMP and $MELANIA, Solana saw an unprecedented increase in investor activity. This overwhelmed the otherwise meme coin-friendly blockchain, resulting in failed transactions. Solaxy, however, will solve this by building the first-ever Layer 2 scaling protocol on Solana. It will offload a huge chunk of the transactions from Solana’s mainnet onto a sidechain, thereby reducing the burden on Solana and cranking up its efficiency. Moreover, the L2 will also execute transactions in batches – rather than one by one – which will improve Solana’s affordability, as the fees required per transaction will go down. With Solana set to take center stage in the rapidly growing DeFi landscape, Solaxy is going to be one of the biggest beneficiaries of this movement. Don’t miss out on possibly the next crypto to explode and buy Solaxy now for just $0.001734. Hurry up, though, because the presale ends in around three weeks, following which $SOLX will be live on all major exchanges. Our Solaxy price prediction suggests that the token could explode 11,500% and reach $0.20 by 2030. 3. Trump Dinner ($DINNER) – Donald Trump’s Historic ‘Crypto Dinner’ Has a Meme Coin $DINNER is the newest addition to the list of Trump-inspired meme coins that have taken the market by storm. As the name suggests, Trump Dinner is based on Donald Trump’s unprecedented move to invite the top holders of the $TRUMP meme coin for an exclusive dinner gala. As per the announcement on the OFFICIAL TRUMP website, the top 220 holders of $TRUMP will be invited to Donald Trump’s private Virginia golf club. The ‘crypto dinner,’ which has raised both appreciation and scrutiny from the crowd, is scheduled for tonight, i.e., May 24. So, in the lead-up to it, $DINNER, a new meme coin based on the event, has painted the town red (green). $DINNER launched just a couple of days ago and has already gained over 180,000%. It’s up close to 1,000% in the past 24 hours and shows no signs of stopping until, at least, a few days after the dinner. That’s because, according to the aforementioned announcement, the top 25 $TRUMP holders will be invited to a ‘special tour’ and ‘private VIP reception with the President.’ DYOR Before Investing in the Best Crypto to Buy Despite $BTC’s confidence-inspiring form, it’s worth remembering that the crypto market is rife with volatile news events and, therefore, uncertainty. Invest carefully and ideally only an amount you’re comfortable losing. Also, kindly do your own research. This article isn’t a substitute for professional financial advice.

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Bitcoin has had an interesting run so far in 2025, embarking on exciting upside rallies and enduring deep corrections in the space of a few months. The latest upward movement suggests the return of interest and confidence in the world’s largest cryptocurrency. After surpassing its previous all-time high price this week, the Bitcoin price has printed a new high of $111,814 — reached on Thursday, May 22. A fresh all-time-high price is often followed by a major correction, as investors are typically inclined to take profits.  However, recent on-chain revelation suggests this Bitcoin bull run might be here to stay — and maybe for a longer period than expected. Analyst Says Realized Profits Yet To Signal Market Top In a May 23 post on social media platform X, on-chain crypto analyst Darkfost revealed that the net realized profits by Bitcoin investors remain normal for a bull phase. The relevant indicator backing this assertion is the Net Realized Profit/Loss metric, which measures the net profit or loss (in USD) of all coins spent on the network over a specific timeframe.  Related Reading: Bitcoin Smashes Past $111K, But Are Traders About to Dump? This on-chain metric is calculated by finding the difference between the realized profit and realized loss of crypto investors. Positive values from the metric indicate that coins are being spent at a higher price than they were acquired, resulting in a net profit.  On the other hand, negative values indicate that coins are being spent at prices lower than they were bought, resulting in a net loss. Neutral values simply suggest that coins are being spent close to their acquisition price. According to on-chain data shared by Darkfost, realized profits are currently at a high level of about 104,000 BTC (a rough equivalent of $11 billion). The analyst, however, pointed out that while this figure is substantial, it still falls short of the 350,000 BTC threshold level (a level which has historically signaled potential tops and preceded major correctional movements of  Bitcoin). Darkfost inferred from the highlighted data that the net realized profit for a Bitcoin bull phase is currently at a normal level. The analyst noted the necessity of profit-taking in a bull market, implicitly preaching against fear amongst investors. Darkfost said about profit-taking: It’s what keeps investors engaged in the market and helps sustain the bullish momentum. Bitcoin Price At A Glance  As of this writing, Bitcoin is valued at around $108,360, reflecting a more than 2% decline in the past 24 hours. Related Reading: Bitcoin Ready For Second ‘Price Discovery Uptrend’ Following $109,000 Breakout – What’s Ahead For BTC? Featured image from iStock, chart from TradingView

This past week, Coinbase joined the S&P 500, one of the world’s most elite stock indexes — a triumph for the crypto firm, which spent much of the 2020s battling US government agencies like the SEC and Commodity Futures Trading Commission for its survival. But this attainment is not about one company alone. “This is more than an achievement for Coinbase; it’s a landmark for the broader crypto and blockchain industry,” said Meryem Habibi, chief revenue officer of Bitpace. Coinbase joining the S&P 500 doesn’t just boost the owner of the largest US cryptocurrency exchange. “It cements the legitimacy of an entire asset class,” she told Cointelegraph. Jason Kennard, head of business development at ARK Invest Europe, told Cointelegraph that for the first time, a crypto-native firm had met the stringent profitability, liquidity and market cap requirements of “the most iconic benchmark index” in global markets, adding:It sends a strong signal to institutional investors: Crypto infrastructure has matured into a credible, systemic part of the financial ecosystem.It is a milestone event, Steve Sosnick, chief strategist at Interactive Brokers, told Cointelegraph, “because whether they want it or not, or know it or not, equity investors who buy S&P 500 index funds will now have crypto exposure via COIN.” Indeed, Coinbase could now get billions of dollars in passive investor flows just from becoming part of the S&P 500. “What’s remarkable about this is that just a few months ago, the company was engaged in an intense legal battle with the SEC, which was charging that its platform was illegal because it was trafficking in unregistered securities,” Benchmark analyst Mark Palmer told CNBC. “This normalizes crypto exposure in conservative portfolios that might otherwise avoid digital assets” and brings with it indirect adoption by institutional investors, retirement plans and sovereign funds that has broader industry significance, added Habibi.Still, it was only a matter of time before some crypto firm would be brought into the S&P 500 fold, Russell Rhoads, clinical associate professor of financial management at Indiana University’s Kelley School of Business Indianapolis, told Cointelegraph. “It does make sense for COIN or some other crypto-related firm to be in the index, as the industry is becoming more important to the global economy and you want the S&P 500 constituents to be representative of the economy.” Separately, Coinbase also reported a data breach last week, a “compromise of passwords or private keys” that could eventually cost the crypto exchange $180 million to $400 million.The hack has exposed the personal information of tens of thousands of users and has left them vulnerable to robberies and kidnappings, as seen in the wake of the 2021 Ledger breach.Related: Violent crypto robberies on the rise: Six attacks that targeted investorsMeanwhile, inclusion in the S&P 500 means that “index funds, including those managed by BlackRock, Vanguard and State Street, must now allocate capital to Coinbase,” Habibi told Cointelegraph. “This means billions of dollars in passive investment will flow into a crypto-native business.” $10 billion in new capital inflows?How much money could flow Coinbase’s way? Passive investing (e.g., investing in an ETF that mirrors the S&P 500) has proliferated in recent years. S&P DJII estimated in 2024 that roughly $10 trillion is now passively tracking the S&P 500.If Coinbase gets only a 0.1% weighting — a share that Habibi thinks reasonable — it could reap $10 billion in potential capital flows without a single investor actively choosing crypto exposure.S&P Dow Jones Indices Annual Survey of Assets. Source: S&P GlobalInstitutional acceptance is arguably the bigger story here, Habibi continued. Coinbase’s inclusion in the index signals that public markets now reward not just growth, but regulatory compliance, operational maturity and long-term vision in the crypto space. She added:The move paves the way for other crypto firms — e.g., Circle, Chainalysis, Fireblocks — to aim for public listings and eventual index inclusion, potentially triggering a new wave of institutional-grade crypto finance companies.It may be premature to speak yet about a convergence of the crypto and TradFi economic sectors, however, as some are doing. “Crypto, overall, is still a very small fraction of the overall economy,” Seoyoung Kim, associate professor of finance at Santa Clara University, told Cointelegraph. “I think the greater convergence coming ahead will be increasing institutional adoption of blockchain-based protocols and tokenization.”A convergence of economies?Others disagree. “We have been talking about TradFi-crypto convergence for quite some time,” Owen Lau, executive director at Oppenheimer & Co, told Cointelegraph. “It is happening and will continue to happen. Robinhood/Bitstamp, Kraken/Ninja Trader and Ripple/Hidden Road are good examples.”“We’re not quite at full convergence, but we’re definitely past the separation phase,” opined Kennard. He, too, referenced crypto ETFs but also pointed to recent events, like Galaxy Digital’s listing on the Nasdaq exchange this month and Coinbase’s role as custodian for multiple ETFs, demonstrating that TradFi firms are now looking to crypto-native firms for some infrastructure needs. “Regulatory clarity is still emerging, but institutional rails are being laid fast,” said Kennard.More equity listings mean that crypto companies can tap markets as a source of liquidity, but that doesn’t necessarily involve a convergence of financial channels, stated Interactive Brokers’ Sosnick. “Convergence will occur when a traditional finance company truly adopts crypto as a means of payment.” Related: Senate stablecoin vote splits Democrats amid concerns over corruptionStill, Habibi pointed to convergence in infrastructure solutions, like JPMorgan’s Onyx platform that is being used to settle billions in intraday repo transactions using blockchain technology, Nasdaq’s digital asset custody infrastructure launch and PayPal’s launch of its PayPal USD (PYUSD) stablecoin, which integrates crypto rails and consumer fintech.“These examples underscore a shift in which crypto and TradFi are no longer competing but co-evolving. Crypto-native firms are beginning to resemble traditional financial institutions in structure, while banks are adopting decentralized technologies to improve efficiency, reduce settlement friction, and expand asset reach,” Habibi explained.Who is next?Now that Coinbase has broken ground, should one expect other crypto firms to gain S&P 500 inclusion soon? Maybe not. A large market capitalization is needed to join the S&P 500, but that alone is not sufficient. There are other criteria. A candidate must have been profitable in the most recent year and quarter to qualify, for instance. “Galaxy Digital is newly listed [on Nasdaq], but [it still] needs consistent profitability,” said Kennard. “Marathon Digital, Riot Platforms and Strategy are often cited but may be a little early in their journey.” Lau didn’t expect any crypto-native companies to join the S&P 500 anytime soon, though it could happen in the next two to three years, he said. Rhoads ventured, “I would not go as far as stating this is the beginning of multiple crypto-related firms joining the S&P 500, as the new members often replace a firm in same industry — in this case, COIN replaced Discover Financial.”Strategy (MSTR) is a possible candidate. It easily has the necessary market capitalization, but it’s struggling to meet the index’s earnings requirements. “I don’t see MSTR making the cut,” said Kim.“I’m not sure who would be next — even Gemini (still private) seems far off based on valuations from their last funding rounds,” Kim continued. “It’s really tough to make it into the S&P 500, and so we’ll likely see existing S&P 500 firms increasingly adopt blockchain/crypto services before we see a true-blue crypto firm — i.e., one that started as a crypto firm — enter the index.”Time will tell, but for now, “I’m not aware of any crypto-linked companies with sufficient market cap and consistent earnings that meet SPX criteria,” concluded Sosnick.Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story 

This past week, Coinbase joined the S&P 500, one of the world’s most elite stock indexes — a triumph for the crypto firm, which spent much of the 2020s battling US government agencies like the SEC and Commodity Futures Trading Commission for its survival. But this attainment is not about one company alone. “This is more than an achievement for Coinbase; it’s a landmark for the broader crypto and blockchain industry,” said Meryem Habibi, chief revenue officer of Bitpace. Coinbase joining the S&P 500 doesn’t just boost the owner of the largest US cryptocurrency exchange. “It cements the legitimacy of an entire asset class,” she told Cointelegraph. Jason Kennard, head of business development at ARK Invest Europe, told Cointelegraph that for the first time, a crypto-native firm had met the stringent profitability, liquidity and market cap requirements of “the most iconic benchmark index” in global markets, adding:It sends a strong signal to institutional investors: Crypto infrastructure has matured into a credible, systemic part of the financial ecosystem.It is a milestone event, Steve Sosnick, chief strategist at Interactive Brokers, told Cointelegraph, “because whether they want it or not, or know it or not, equity investors who buy S&P 500 index funds will now have crypto exposure via COIN.” Indeed, Coinbase could now get billions of dollars in passive investor flows just from becoming part of the S&P 500. “What’s remarkable about this is that just a few months ago, the company was engaged in an intense legal battle with the SEC, which was charging that its platform was illegal because it was trafficking in unregistered securities,” Benchmark analyst Mark Palmer told CNBC. “This normalizes crypto exposure in conservative portfolios that might otherwise avoid digital assets” and brings with it indirect adoption by institutional investors, retirement plans and sovereign funds that has broader industry significance, added Habibi.Still, it was only a matter of time before some crypto firm would be brought into the S&P 500 fold, Russell Rhoads, clinical associate professor of financial management at Indiana University’s Kelley School of Business Indianapolis, told Cointelegraph. “It does make sense for COIN or some other crypto-related firm to be in the index, as the industry is becoming more important to the global economy and you want the S&P 500 constituents to be representative of the economy.” Separately, Coinbase also reported a data breach last week, a “compromise of passwords or private keys” that could eventually cost the crypto exchange $180 million to $400 million.The hack has exposed the personal information of tens of thousands of users and has left them vulnerable to robberies and kidnappings, as seen in the wake of the 2021 Ledger breach.Related: Violent crypto robberies on the rise: Six attacks that targeted investorsMeanwhile, inclusion in the S&P 500 means that “index funds, including those managed by BlackRock, Vanguard and State Street, must now allocate capital to Coinbase,” Habibi told Cointelegraph. “This means billions of dollars in passive investment will flow into a crypto-native business.” $10 billion in new capital inflows?How much money could flow Coinbase’s way? Passive investing (e.g., investing in an ETF that mirrors the S&P 500) has proliferated in recent years. S&P DJII estimated in 2024 that roughly $10 trillion is now passively tracking the S&P 500.If Coinbase gets only a 0.1% weighting — a share that Habibi thinks reasonable — it could reap $10 billion in potential capital flows without a single investor actively choosing crypto exposure.S&P Dow Jones Indices Annual Survey of Assets. Source: S&P GlobalInstitutional acceptance is arguably the bigger story here, Habibi continued. Coinbase’s inclusion in the index signals that public markets now reward not just growth, but regulatory compliance, operational maturity and long-term vision in the crypto space. She added:The move paves the way for other crypto firms — e.g., Circle, Chainalysis, Fireblocks — to aim for public listings and eventual index inclusion, potentially triggering a new wave of institutional-grade crypto finance companies.It may be premature to speak yet about a convergence of the crypto and TradFi economic sectors, however, as some are doing. “Crypto, overall, is still a very small fraction of the overall economy,” Seoyoung Kim, associate professor of finance at Santa Clara University, told Cointelegraph. “I think the greater convergence coming ahead will be increasing institutional adoption of blockchain-based protocols and tokenization.”A convergence of economies?Others disagree. “We have been talking about TradFi-crypto convergence for quite some time,” Owen Lau, executive director at Oppenheimer & Co, told Cointelegraph. “It is happening and will continue to happen. Robinhood/Bitstamp, Kraken/Ninja Trader and Ripple/Hidden Road are good examples.”“We’re not quite at full convergence, but we’re definitely past the separation phase,” opined Kennard. He, too, referenced crypto ETFs but also pointed to recent events, like Galaxy Digital’s listing on the Nasdaq exchange this month and Coinbase’s role as custodian for multiple ETFs, demonstrating that TradFi firms are now looking to crypto-native firms for some infrastructure needs. “Regulatory clarity is still emerging, but institutional rails are being laid fast,” said Kennard.More equity listings mean that crypto companies can tap markets as a source of liquidity, but that doesn’t necessarily involve a convergence of financial channels, stated Interactive Brokers’ Sosnick. “Convergence will occur when a traditional finance company truly adopts crypto as a means of payment.” Related: Senate stablecoin vote splits Democrats amid concerns over corruptionStill, Habibi pointed to convergence in infrastructure solutions, like JPMorgan’s Onyx platform that is being used to settle billions in intraday repo transactions using blockchain technology, Nasdaq’s digital asset custody infrastructure launch and PayPal’s launch of its PayPal USD (PYUSD) stablecoin, which integrates crypto rails and consumer fintech.“These examples underscore a shift in which crypto and TradFi are no longer competing but co-evolving. Crypto-native firms are beginning to resemble traditional financial institutions in structure, while banks are adopting decentralized technologies to improve efficiency, reduce settlement friction, and expand asset reach,” Habibi explained.Who is next?Now that Coinbase has broken ground, should one expect other crypto firms to gain S&P 500 inclusion soon? Maybe not. A large market capitalization is needed to join the S&P 500, but that alone is not sufficient. There are other criteria. A candidate must have been profitable in the most recent year and quarter to qualify, for instance. “Galaxy Digital is newly listed [on Nasdaq], but [it still] needs consistent profitability,” said Kennard. “Marathon Digital, Riot Platforms and Strategy are often cited but may be a little early in their journey.” Lau didn’t expect any crypto-native companies to join the S&P 500 anytime soon, though it could happen in the next two to three years, he said. Rhoads ventured, “I would not go as far as stating this is the beginning of multiple crypto-related firms joining the S&P 500, as the new members often replace a firm in same industry — in this case, COIN replaced Discover Financial.”Strategy (MSTR) is a possible candidate. It easily has the necessary market capitalization, but it’s struggling to meet the index’s earnings requirements. “I don’t see MSTR making the cut,” said Kim.“I’m not sure who would be next — even Gemini (still private) seems far off based on valuations from their last funding rounds,” Kim continued. “It’s really tough to make it into the S&P 500, and so we’ll likely see existing S&P 500 firms increasingly adopt blockchain/crypto services before we see a true-blue crypto firm — i.e., one that started as a crypto firm — enter the index.”Time will tell, but for now, “I’m not aware of any crypto-linked companies with sufficient market cap and consistent earnings that meet SPX criteria,” concluded Sosnick.Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story 

On May 24, 2025, bitcoin ( BTC) is coasting along at $109,273, reflecting a substantial valuation amid an active trading session. With a market capitalization of $2.17 trillion and a 24-hour trading volume of $46.66 billion, the price oscillated between an intraday low of $107,156 and a peak of $109,840. Bitcoin On the daily chart, […]