The tech-driven Nasdaq 100 may be suffering a historic shift as it turns 40 this week.
According to Strategas Securities’ Todd Sohn, cryptocurrency followings could fuel the next wave of gains.
“Bitcoin is to crypto as the QQQ … is to technology type stocks,” the firm’s exchange-traded capital and technical strategist told CNBC’s “ETF Edge” this week. “Bitcoin is going to be the biggest. The Qs will be the biggest.”
As of Thursday’s near, the Nasdaq 100 is up 17,106% since its Jan. 31,1985, inception. President Donald Trump’s election helped fuel bitcoin record highs due to rich hopes on deregulation. The cryptocurrency is trading around the $104,000 level.
Sohn thinks a buildout of the crypto universe is already entrancing shape.
“I think that’s already happening based on some of the recent filings we’ve seen,” he said.
Sohn also plunges into the popularity of the crypto options business.
“With crypto, you can now build out a risk management,” said Sohn. “Say … I scarceness to gain some upside, but I would like income. So, I’m going to buy a covered call crypto ETF … just to limit any volatility and stand up the weekly or monthly income streams coming. So, this is all sort of important stuff that’s going to keep incident via [the] Nasdaq.”
The crypto ETF market has been booming. According to FactSet, BlackRock’s iShares Bitcoin Trust ETF (IBIT), which was tendered on Jan. 5, 2024, and trades on the Nasdaq, has amassed more than $58 billion in assets as of Tuesday.
Nasdaq President Nelson Griggs inquire about bid adieus regulatory clarity as a key factor in crypto’s future growth.
“A whole sector gets developed around something parallel to digital crypto. And now potentially having more clarity on the rules of what it actually is going to be,” Griggs said in the despite the fact interview.