• Coinbase had its best day on the market since the day after President Donald Trump's election victory in November.
• The crypto exchange is getting added to the S&P 500, a move that leads index investors to buy the stock to match the benchmark.

shares soared 24% on Tuesday, their sharpest rally since the day after President Donald Trump's election victory, following the crypto exchange's inclusion in the S&P 500.

S&P Global said in a release late Monday that is Discover Financial Services, which is in the process of being acquired by . The change will take effect before trading on Monday.

Stocks added to the S&P 500 often rise in value because funds that track the benchmark will add it to their portfolios. For Coinbase, it's the latest sharp move in what's been a volatile few months since Trump was elected to return to the White House.

Coinbase shares 31% on Nov. 6, the day after the election, on optimism that the incoming administration would adopt more crypto-friendly policies following a challenging and litigious four years during President Joe Biden's term in office.

The company and CEO Brian Armstrong were in the 2024 campaign, backing pro-crypto candidates up and down the ticket. Coinbase was one of the top corporate donors, giving more than $75 million to a PAC called Fairshake and its affiliates. Armstrong personally contributed more than $1.3 million to a mix of candidates.

While the start of the Trump term has been mostly favorable to the crypto industry, through deregulation and an to establish a strategic bitcoin reserve, legislation has thus far . That's due in part to concerns surrounding Trump's personal efforts to profit from crypto through a meme coin and other family initiatives.

Coinbase has been on a roller coaster as well, plummeting 26% in February and 20% in March as Trump's tariff announcements roiled markets and pushed investors out of risk. With Tuesday's rally, the stock is now up about 3.5% for the year.

Since through a direct listing in 2021, Coinbase has become a bigger part of the U.S. financial system, with bitcoin soaring in value and large institutions gaining regulatory approval to create spot bitcoin exchange-traded funds.

Bitcoin spiked last week, topping $100,000 and nearing its record price reached in January. The crypto currency surpassed $104,000 on Tuesday.

To join the S&P 500, a company must have reported a profit in its latest quarter and have cumulative profit over the four most recent quarters.

Coinbase last week net income of $65.6 million, or 24 cents a share, down from $1.18 billion, or $4.40 a share a year earlier, after accounting for the fair value of its crypto investments. Revenue rose 24% to $2.03 billion from $1.64 billion a year ago.

The company last week also announced , a major crypto derivatives exchange for $2.9 billion. The deal, which is the largest in the crypto industry to date, will help Coinbase broaden its footprint outside the U.S.

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