Reddit joined the S&P 500 on August 13, replacing AvalonBay Communities following its absorption by Equity Residential, sending the RDDT stock up 11% after the announcement. The company, valued at over $30 billion, had sold all of its Bitcoin and Ethereum holdings for approximately $6.87 million, removing any crypto exposure from its balance sheet. This index entry, driven purely by a sector merger rather than performance, creates structural buying pressure from index funds and ETFs replicating the S&P 500. Reddit, which had made crypto a key pillar of its IPO strategy in 2024, is now divested from that ecosystem yet still caught in the same passive flow dynamics that benefited Coinbase upon its own inclusion last year.
Source: Read the original article
