Coinbase's recent inclusion in the S&P 500 marks a significant milestone for both the company and the broader crypto industry. This achievement solidifies the legitimacy of cryptocurrencies as a serious asset class. Experts agree that this event sends a strong signal to institutional investors, showing that crypto infrastructure has matured and is now an integral part of the financial ecosystem. With Coinbase in the index, billions of dollars from passive investment flows could be directed towards it, which could further legitimize crypto in conservative investment portfolios. This move could encourage other crypto firms, like Circle and Chainalysis, to pursue public listings and aim for S&P 500 inclusion, indicating a potential shift towards greater institutional acceptance of crypto. While some believe we are moving closer to a convergence between traditional finance (TradFi) and crypto, others caution that the latter still remains a small element of the overall economy. Nevertheless, the integration of blockchain technologies within traditional economic frameworks suggests that crypto and TradFi are co-evolving rather than competing.

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