We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MicroStrategy (MSTR - Free Report) , the world’s largest Bitcoin hoarder, is set to join the Nasdaq 100 index on Dec. 23. The move will offer the cryptocurrency more exposure in the tech-heavy market. The stock is often viewed as a Bitcoin proxy.
A Major Bitcoin Proxy in the Nasdaq 100
MicroStrategy holds an astounding number of 423,650 Bitcoins, making it a unique and volatile addition to the Nasdaq 100. The index comprises the top 100 tech and non-financial companies from the larger Nasdaq Composite index (IXIC), which houses over 2,500 firms.
Impact on ETFs Tracking the Nasdaq 100
Exchange-traded funds (ETFs) that track the Nasdaq 100 will automatically include MicroStrategy in their holdings. For example, the Invesco QQQ ETF (QQQ - Free Report) , a popular tech-focused fund with $325 billion in assets, will now acquire shares of MicroStrategy, regardless of investor preference. Other ETFs with such exposure include Invesco NASDAQ 100 ETF (QQQM - Free Report) and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) .
MicroStrategy's Stock Surges in 2024
This landmark comes after about a 500% year-to-date rally in MicroStrategy’s stock price. Originally an enterprise software company, MicroStrategy pivoted in 2020 under its founder, Michael Saylor, who has embraced Bitcoin with firm commitment. MicroStrategy's market value has soared to almost $98 billion now.
The company currently holds about $43 billion worth of Bitcoin and continues to acquire more, betting its entire business on the cryptocurrency’s future. Bitcoin is up about 140% this year due to more mainstream acceptance. The cryptocurrency has seen launches of several ETFs earlier in the year and started rallying thereon.
Moreover, President-elect Trump has plans to create a U.S. bitcoin strategic reserve similar to its strategic oil reserve, fueling the enthusiasm of crypto bulls. Crypto bulls are anticipating a friendlier regulatory environment in Trump 2.0 era. Bitcoin has surged more than 50% since the U.S. election on Nov. 5 (read: Trump Win Fuels U.S. Stock Surge, Leveraged ETFs Soar).
China, UK, Bhutan and El Salvador are the other countries with a significant amount of bitcoins, data site BitcoinTreasuries revealed, as quoted on Reuters. Overall, MicroStrategy and Bitcoin are two interlinked plays. The recent addition to the Nasdaq-100 will likely give both a boost.
A Huge Shift for Public Markets
The inclusion of MicroStrategy in the Nasdaq 100 not only reflects the growing acceptance of cryptocurrency but also introduces new volatility to the index. This shift could have extensive implications for both public markets and the broader ETF sector.
But then, if you have a strong stomach for risk, you can invest in MicroStrategy-heavy ETFs to diversify some risks and downsides.
These ETFs include Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) , First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) and Schwab Crypto Thematic ETF (STCE - Free Report) , VanEck Digital Transformation ETF (DAPP - Free Report) and ProShares Big Data Refiners ETF (DAT - Free Report) .
However, there is an ETF called T-Rex 2X Long MSTR Daily Target ETF (MSTU - Free Report) , which is an extremely risky choice but has the potential to deliver great returns if the MSTR bull rally continues. The T-Rex 2X Long MSTR Daily Target ETF seeks daily investment results, before fees and expenses, of 200% of the daily performance of MSTR. This ETF is apt for short-term use (see all single stock ETFs here).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MicroStrategy to Join Nasdaq-100: Tap MSTR ETFs
MicroStrategy (MSTR - Free Report) , the world’s largest Bitcoin hoarder, is set to join the Nasdaq 100 index on Dec. 23. The move will offer the cryptocurrency more exposure in the tech-heavy market. The stock is often viewed as a Bitcoin proxy.
A Major Bitcoin Proxy in the Nasdaq 100
MicroStrategy holds an astounding number of 423,650 Bitcoins, making it a unique and volatile addition to the Nasdaq 100. The index comprises the top 100 tech and non-financial companies from the larger Nasdaq Composite index (IXIC), which houses over 2,500 firms.
Impact on ETFs Tracking the Nasdaq 100
Exchange-traded funds (ETFs) that track the Nasdaq 100 will automatically include MicroStrategy in their holdings. For example, the Invesco QQQ ETF (QQQ - Free Report) , a popular tech-focused fund with $325 billion in assets, will now acquire shares of MicroStrategy, regardless of investor preference. Other ETFs with such exposure include Invesco NASDAQ 100 ETF (QQQM - Free Report) and Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE - Free Report) .
MicroStrategy's Stock Surges in 2024
This landmark comes after about a 500% year-to-date rally in MicroStrategy’s stock price. Originally an enterprise software company, MicroStrategy pivoted in 2020 under its founder, Michael Saylor, who has embraced Bitcoin with firm commitment. MicroStrategy's market value has soared to almost $98 billion now.
The company currently holds about $43 billion worth of Bitcoin and continues to acquire more, betting its entire business on the cryptocurrency’s future. Bitcoin is up about 140% this year due to more mainstream acceptance. The cryptocurrency has seen launches of several ETFs earlier in the year and started rallying thereon.
Moreover, President-elect Trump has plans to create a U.S. bitcoin strategic reserve similar to its strategic oil reserve, fueling the enthusiasm of crypto bulls. Crypto bulls are anticipating a friendlier regulatory environment in Trump 2.0 era. Bitcoin has surged more than 50% since the U.S. election on Nov. 5 (read: Trump Win Fuels U.S. Stock Surge, Leveraged ETFs Soar).
China, UK, Bhutan and El Salvador are the other countries with a significant amount of bitcoins, data site BitcoinTreasuries revealed, as quoted on Reuters. Overall, MicroStrategy and Bitcoin are two interlinked plays. The recent addition to the Nasdaq-100 will likely give both a boost.
A Huge Shift for Public Markets
The inclusion of MicroStrategy in the Nasdaq 100 not only reflects the growing acceptance of cryptocurrency but also introduces new volatility to the index. This shift could have extensive implications for both public markets and the broader ETF sector.
But then, if you have a strong stomach for risk, you can invest in MicroStrategy-heavy ETFs to diversify some risks and downsides.
These ETFs include Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) , First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) and Schwab Crypto Thematic ETF (STCE - Free Report) , VanEck Digital Transformation ETF (DAPP - Free Report) and ProShares Big Data Refiners ETF (DAT - Free Report) .
However, there is an ETF called T-Rex 2X Long MSTR Daily Target ETF (MSTU - Free Report) , which is an extremely risky choice but has the potential to deliver great returns if the MSTR bull rally continues. The T-Rex 2X Long MSTR Daily Target ETF seeks daily investment results, before fees and expenses, of 200% of the daily performance of MSTR. This ETF is apt for short-term use (see all single stock ETFs here).