According to PANews, Matthew Sigel, Head of Digital Asset Research at VanEck, stated on the X platform that fintech company Block is likely to become the first company in the S&P 500 to hold Bitcoin. To be included in the index, a company must meet six major criteria: a market capitalization exceeding $18 billion, a public float of more than 10%, positive earnings in the most recent quarter and a cumulative positive GAAP earnings over the last four quarters, high liquidity, a listing duration of at least 12 months, and a U.S.-based headquarters.
Block met the final criterion of earnings after releasing its first-quarter 2024 financial report. However, inclusion in the S&P 500 is not strictly formulaic and is ultimately decided by the index committee. Historically, companies meeting all requirements have been included within 3 to 21 months, with LULU being an exception, taking 65 months.
Industry diversification is one of the factors considered by the index committee, aiming to maintain an industry composition broadly consistent with the economic landscape. Although the term "consistent with the industry economy" is not explicitly defined, the S&P Total Market Index can serve as a reference: the financial sector currently represents 13.9% of the S&P 500, compared to 14.6% in the broader index, indicating potential room for growth in the financial sector.
