The Nasdaq 100 index could undergo a significant change.
James Seyffart & Eric Balchunas, Senior Bloomberg ETF Analysts The numbers are broken down Thursday, projecting that MicroStrategy's inclusion would make it the 40th largest holding in the index with an estimated 0.47% weighting.
The analysts note that the official announcement for implementation is scheduled to be on the 13th of December.
Seyffart has claimed at least "$2.1 billion in shares by ETFs" This would then be followed by the addition that it represents "about 20% of daily volume," According to the shared Notes.
The analyst also said while MicroStrategy's inclusion in the S&P 500 is challenging due to profitability requirements, upcoming Bitcoin accounting changes could open that door by 2025.
It is included in this list, but its inclusion does not guarantee that it will be. "best estimate of what will go down," Balchunas is also a good guide. Balchunas, too Here are some of the responses. When asked if they could exclude someone, the staff said that there were no grounds.
Nasdaq or MicroStrategy didn’t immediately respond to a comment request.
The watershed moment
This could be a pivotal moment in the entry of crypto-centric companies into mainstream finance.
The Nasdaq 100 index includes the 100 largest companies that are not financial on the Nasdaq stock exchange. It is a benchmark used by sectors such as technology, healthcare, and consumer services.
In particular, its composition and performance influence the market’s sentiment and investments flows.
Invesco’s QQQ Trust, for example, is a major investment product that relies on the index.
Market volatility can be impacted by changes in membership, as approximately $550 Billion of ETFs track the index.
MicroStrategy comes in a variety of forms Grabbed up The firm bought another 21,550 BTC on Monday for $2.1 Billion at $98,000 per coin. It's also the firm's fifth-straight purchase. Its total crypto-war chest now stands at 423,650 BTC (roughly $42 billion) at current prices.
Markets have also noticed. MicroStrategy shares have skyrocketed over 450% this year, dwarfing Bitcoin's 110% climb over the same period.
As a result, the company's market value has swelled to $82 billion—up from $54.8 billion a month ago—as traditional investors seek crypto exposure through familiar equity markets.
Sebastian Sinclair edited the book