The Nasdaq 100: A 40-Year Evolution and the Rise of Cryptocurrency
As the Nasdaq 100 celebrates its 40th anniversary, the tech-driven index is poised for a historic shift. According to Strategas Securities’ Todd Sohn, cryptocurrency companies are likely to fuel the next wave of gains. Sohn draws a parallel between Bitcoin and the QQQ, stating that “Bitcoin is to crypto as the QQQ is to technology type stocks.”
A Stellar Performance
Since its inception on January 31, 1985, the Nasdaq 100 has surged an impressive 17,106%. The index has been driven by various factors, including President Donald Trump’s election, which led to record highs in Bitcoin due to hopes of deregulation. Currently, Bitcoin is trading around the $104,000 level.
Building the Crypto Universe
Sohn believes that the buildout of the crypto universe is already underway, citing recent filings as evidence. The popularity of crypto options is also on the rise, allowing investors to manage risk and generate income. Sohn notes that investors can now “buy a covered call crypto ETF to limit any volatility and keep the weekly or monthly income streams coming.”
The Rise of Crypto ETFs
The crypto ETF market has experienced significant growth, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) amassing over $58 billion in assets since its launch on January 5, 2024. Nasdaq President Nelson Griggs attributes the growth to regulatory clarity, stating that “a whole sector gets developed around something like digital crypto. And now potentially having more clarity on the rules of what it actually is going to be.”
A New Era for the Nasdaq 100
As the Nasdaq 100 enters its 40th year, it’s clear that cryptocurrency will play a significant role in its future growth. With the buildout of the crypto universe and the rise of crypto ETFs, investors can expect a new era of innovation and opportunity.
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