Robinhood Joins S&P 500 As Crypto Firms Still Sidelined

The latest revision of the S&P 500 does more than just redistribute the cards. While the entry of Robinhood, a symbol of accessible finance, was welcomed, the discretionary exclusion of Strategy, despite meeting all technical criteria, is surprising. Behind this choice, a troubling reality emerges: certain companies exposed to bitcoin still seem persona non grata in major indices. This decision raises questions about the impartiality of the committee and the real place given to the crypto ecosystem.

A discretionary exclusion, despite meeting the criteria

As part of its quarterly revision announced on September 3, the S&P Dow Jones Indices revealed that the company Robinhood would join the S&P 500 index after a rejection a few weeks ago, while Strategy, a company heavily exposed to bitcoin, would not be selected, despite meeting all eligibility criteria.

Strategy fully met the minimum requirements for market capitalization, liquidity, and profitability. However, the committee invoked its discretionary prerogative to exclude it, without providing a public justification. This power, although provided for in the rules, raises questions when applied to a company deemed technically compliant.

More specifically, Strategy met according to the available data :

• A sufficient market capitalization based on the thresholds defined by the S&P 500 ;
• Adequate liquidity, measured by the average daily trading volume ;
• Proven profitability, an essential condition to be included in the index ;
• And a domicile in the United States, a required geographic criterion.

Despite this compliant profile, the committee decided not to include Strategy, which has been interpreted by some analysts as a form of implicit exclusion of companies directly exposed to bitcoin.

The lack of an official explanation leaves the door open to speculation, notably about a possible anti-crypto bias in the selection mechanisms. This decision thus raises questions about the neutrality of the integration process within the S&P 500.

Robinhood admitted : a mass-market crypto platform

Unlike Strategy, Robinhood was admitted into the S&P 500, a decision that, although welcomed by the crypto market, also triggers its share of questions.

The trading platform, known for popularizing stock investments among a young audience, also has partial exposure to crypto, as it offers buying and selling of several assets.

However, this exposure remains marginal compared to its core business, focused on traditional stock brokerage and ETF. The S&P 500 committee seems to have judged this crypto proximity tolerable, as integrated within a more conventional model and aligned with classical finance standards.

It is not enough to be profitable and liquid to enter the S&P 500; the business model must also align with the expectations of institutional finance. Robinhood benefits from a “mass-market” image, well established in the American stock ecosystem.

It does not represent a threat to the established order, unlike Strategy, whose connection with bitcoin, which has nevertheless crushed the S&P 500, directly echoes a logic of radical disintermediation. In other words, crypto companies can be accepted, provided they integrate wisely into existing structures.