The Daily: Coinbase's S&P 500 inclusion could see $9B in passive inflows as stock jumps 25%, GD Culture plans $300M BTC and TRUMP buy, and more

The following article is adapted from The Block’s newsletter,  The Daily , which comes out on weekday afternoons.

Happy Tuesday! Crypto-related equities jumped at the open this morning as U.S. inflation data cooled for a third straight month, pushing headline CPI to a four-year low, in what analysts describe as a "catch-up" trade with digital assets.

In today's newsletter, Bernstein estimates Coinbase's S&P 500 inclusion could see $9 billion in passive inflows, GD Culture Group plans to sell up to $300 million in shares to buy BTC and TRUMP, Robinhood is set to acquire Kevin O'Leary-backed WonderFi for $179 million, and more.

Meanwhile, Paris police are on the hunt for armed suspects after an attempted kidnapping of a crypto entrepreneur's daughter and grandchild. Plus, Galaxy Digital finalizes its U.S. move ahead of a planned Nasdaq listing this week, but posts a $295 million net loss for Q1.

Let's get started.

'First they fight you, then add you to the S&P 500'

Coinbase will join the S&P 500 on May 19, becoming the first pure-play crypto firm in the index and replacing Discover Financial Services after its acquisition by Capital One.

• Analysts at Bernstein estimate that COIN could see around $9 billion in passive inflows from S&P 500-linked funds , driven by its approximate 0.1% index weight, and a potential $7 billion of buying from active funds.
• "First they fight you, then add you to the S&P 500," the analysts led by Gautam Chhugani wrote in a note to clients — referencing a "dramatic turnaround" in fortunes and rising significance of Coinbase and the crypto industry in general.
• "Coinbase has gone from being in an intense litigation with the SEC just a few months back (later dropped by the agency under the Trump regime) to being the latest addition to S&P 500," they noted.
• Coinbase President Emilie Choi and CEO Brian Armstrong called the listing a watershed moment, with Armstrong saying "crypto is about to be in everyone's 401k."
• Coinbase stock is currently trading up 25% on Tuesday at around $258, according to The Block's Coinbase price page .
• Bernstein maintains an "outperform" rating on Coinbase with a $310 price target, citing U.S. crypto reshoring and institutional tailwinds.

GD Culture Group to sell up to $300 million in shares to acquire BTC and TRUMP

Nasdaq-listed GD Culture Group plans to sell up to $300 million in shares to fund BTC and TRUMP memecoin purchases as part of a new crypto treasury strategy.

• The AI and e-commerce company aims to enhance its balance sheet by integrating crypto assets into its core operations, aligning with the booming corporate adoption trend.
• GD Culture is pushing ahead with the crypto pivot despite reporting a $14.1 million net loss in 2024 and recently facing Nasdaq compliance issues after failing to meet the minimum stockholders' equity threshold of $2.5 million.
• The move comes amid a broader wave of Trump-era corporate crypto accumulation, with firms like Freight Technologies and Metaplanet echoing Strategy's playbook.

Robinhood to acquire Canadian crypto platform WonderFi for $179 million

Robinhood is set to acquire Canadian crypto platform WonderFi for around $179 million in cash, marking a major push into the country's digital asset market.

• The deal represents a 71% premium over WonderFi's 30-day volume-weighted average trading price and includes brands like Bitbuy, Coinsquare, and SmartPay.
• WonderFi's leadership and staff will remain in place under Robinhood Crypto, with plans to expand its crypto offerings and integrate with Robinhood's existing Canadian team of over 140 employees.
• Following shareholder and regulator approval, the transaction is expected to close in the second half of 2025.
• It comes amid a wave of crypto M&A activity, including Coinbase's $2.9 billion Deribit buyout, Kraken's $1.5 billion purchase of NinjaTrader, and Ripple's $1.25 billion acquisition of Hidden Road.

NYC Mayor Eric Adams wants long-term value with crypto, not to chase 'memes'

New York Mayor Eric Adams said he's focused on building long-term value for the city through crypto and blockchain , not chasing hype or memecoins.

• Adams and his team specifically highlighted blockchain's potential to support underbanked communities and democratize access to vital information such as birth and death records.
• Previously a Democrat, the pro-crypto mayor is now running for reelection as an independent, and will host the city's first crypto summit on May 20, aiming to accelerate his ambition to make New York the "crypto capital of the globe."
• Last month, five federal charges against Adams, including wire fraud, were dismissed by a U.S. District Judge following a request from the Justice Department under the Trump administration.

Curve Finance's front-end targeted in DNS attack

Hackers launched a Domain Name Service (DNS) spoofing attack on Curve Finance's main website late Monday, prompting the team to redirect users to a backup domain and warn against using the compromised site.

• Curve confirmed that its smart contracts and user funds remain safe, as the breach was limited to the DNS layer and did not affect any protocol infrastructure.
• The incident follows a recent hijack of Curve's X account, marking the second major security breach in days as the platform continues to investigate and work with partners to contain the issue.

In the next 24 hours

• U.S. mortgage data are released at 7 a.m. ET on Wednesday.
• U.S. Federal Reserve Governors Christopher Waller and Philip Jefferson will speak at 5:15 a.m. and 9:10 a.m., respectively. FOMC member Mary Daly follows at 5:40 p.m.
• IOTA is set for a token unlock .
• Consensus kicks off in Toronto.

Never miss a beat with The Block's  daily digest  of the most influential events happening across the digital asset ecosystem.