The S&P 500 just added this crypto stock and its shares are soaring

The addition is considered a major milestone for crypto stocks.

The S&P 500 added a new member to its ranks, Coinbase Global (NASDAQ: COIN), the leading platform for cryptocurrency trading.

Coinbase will start trading on the S&P 500 on May 19. It will replace Discover Financial (NYSE: DFS), the credit card company that is set to be acquired by Capital One Financial (NYSE: COF) on May 18.

Coinbase shares were soaring on the announcement, as the stock was the top performer on Tuesday, rising a massive 25% on the day.

When it joins the S&P 500 on May 19, Coinbase will be the first crypto stock ever to be listed on the large-cap benchmark.

“We are honored to be included and grateful for this recognition,” Coinbase Chief Financial Officer Alesia Haas said. “This is a major milestone, not just for Coinbase, but also for the entire crypto industry. Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading.”

Oppenheimer raises price target

Being part of the S&P 500 can provide a big lift for a stock, as it means it will be included in S&P 500 index funds and be exposed to more institutional investors. It will also raise its visibility and profile from institutional investors in general, even those not investing in index funds.

Analysts at Oppenheimer raised their price target by $24 to $293 per share on the news. Oppenheimer said the heightened exposure to institutional investors will be a catalyst to send the stock price higher.

Monness Crespi also boosted it target, raising it to $300 per share. Coinbase stock has a median price of $252 per share among analysts.

In its first quarter earnings released last week, Coinbase saw a 24% spike in revenue, but fell short of estimates. Coinbase’s outlook for Q2 also came in below what analysts expected.

However, its stock price got a lift when it announced the acquisition of Deribit, a global leader in crypto options trading, last week.

Coinbase stock is now trading at $259 per share, up 4.3% year-to-date. It is up 29% over the past year and has an average annualized return of 64% over the past three years. Further, Coinbase has a reasonable P/E ratio of 21.