Robinhood Markets will join the S&P 500 on Sept. 22, replacing Caesars Entertainment, a move that expands the index's exposure to the crypto sector. Alongside Coinbase, which also operates in the crypto space, Robinhood's inclusion signifies the recognition of crypto-related businesses as integral to the market. This development offers index funds, pensions, and institutions greater access to the burgeoning digital asset economy. While the S&P 500 does not hold cryptocurrencies directly, Robinhood's function as a retail gateway enables investors to indirectly share in the growth of the sector. Following the announcement, Robinhood's stock experienced significant gains, attracting passive capital into its shares. However, the inclusion of crypto-related companies could introduce some volatility to the index due to their high beta values. CNBC's Jim Cramer commended Robinhood's impact on the retail brokerage landscape and its ongoing expansion into new financial services, highlighting its status as a disruptive force in the market.

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