VanEck executive: Block is expected to become the first company in the S&P 500 to hold Bitcoin

Matthew Sigel, head of digital asset research at VanEck, stated in an article on X platform that fintech company Block is expected to become the first company in the S&P 500 to hold Bitcoin. To be included in the index, a stock must meet six major criteria, including: 1) a market value exceeding $18 billion; 2) Public shareholding exceeds 10%; 3) The revenue for the most recent quarter should be positive, and the total GAAP revenue for the first four quarters should also be positive; 4) High liquidity; 5) Listed for at least 12 months; 6) The company's headquarters is located in the United States. After the release of the first quarter 2024 financial report, Block met the last criterion (revenue). However, inclusion in the S&P 500 index does not strictly follow the formula, but is determined at the discretion of the index committee. In history, companies that meet all requirements were included within 3 to 21 months (LULU was an exception, taking 65 months). Industry diversification is one of the factors considered by the index committee, which aims to maintain an industry composition that is generally consistent with the industry economy. The term 'consistent with industry economy' is not clearly defined, so the S&P Whole Market Index can be used as a reference: the financial industry currently accounts for 13.9% of the S&P 500, while it accounts for 14.6% of the broader index, indicating that there is still room for growth in the financial industry.