Coinbase shares $(COIN)$ rocketed more than 10% in the extended session after ending the regular trading day up 4%.

A place in the S&P 500 index is a coveted spot for companies. It brings the shares to a much broader range of investors, as well as to passive funds that track the benchmark and actively managed funds that may have limitations to where they can invest.

The crypto-trading company will replace Discover Finance, which $Capital One Financial Corp(COF-N)$. $(COF)$ is acquiring in a deal that is closing soon.

Coinbase was snubbed in the most recent S&P 500 index SPX shakeup in March, which ushered in DoorDash Inc. $(DASH)$, TKO Group Holdings Inc. $(TKO.UK)$, Williams-Sonoma Inc. (WSM) and Expand Energy Corp. $(EXE)$.

A company's market capitalization is not the only admission ticket to the benchmark index, even as S&P 500 names are some of the largest U.S. companies by market value. Inclusion criteria include measures of profitability and float.

Coinbase last Thursday reported a disappointing quarter that the company pinned on the drop in cryptocurrency prices, alongside the broader market, due to tariffs and economic uncertainty.

First-quarter sales missed Wall Street's expectations and dropped when compared to fourth-quarter sales. The company showed an even steeper quarter-on-quarter drop for its transaction revenue and called for lower current-quarter subscription sales.