According to Bloomberg ETF analyst Eric Balchunas' tweet, MicroStrategy (stock code MSTR) may be added to QQQ on 12/23, with an official announcement to be made on 12/13. Its weight is estimated to be 0.46% (the 40th largest holding). Currently, there are $550 billion in ETFs tracking this index, and next year MicroStrategy may have a better chance of joining the S&P 500 index.
QQQ is an ETF that tracks the Nasdaq 100 index (NASDAQ-100 Index), issued by Invesco, and was established on March 10, 1999. It is the most commonly purchased ETF by investors who favor technology stocks, currently with an asset management scale of $325.8 billion.
The tweet by Balchunas likely refers to the possibility of MicroStrategy being included in the Nasdaq 100 index this year. The Nasdaq 100 index includes the 100 largest non-financial companies listed on Nasdaq, mainly from sectors such as technology, consumer goods, healthcare, and industrials. Technology companies, in particular, hold a significant weight in the Nasdaq 100 index, making it an important benchmark for measuring the performance of the technology industry.
Balchunas mentioned that there are currently $550 billion in ETFs tracking this index, predicting that it will bring $2.093 billion in passive buying funds. Next year, MicroStrategy may also have a better chance of joining the S&P 500 index.
As the stock price continues to rise, MicroStrategy's market capitalization has reached $84.8 billion, with an average daily trading volume of $342.5 billion. Whether this can bring short-term injection to MicroStrategy's stock price remains to be observed.
However, if a stock can be included in a major index, it will 'automatically permeate many portfolios' and will also be an important reference for institutional investors. Although the price of Bitcoin fell yesterday, MicroStrategy's stock price surged by 3.28% due to this news, increasing by 444% so far this year, far exceeding Bitcoin's 131%.
This article about MicroStrategy possibly joining the Nasdaq 100 index and automatically permeating into holdings like QQQ and other ETFs first appeared in Chain News ABMedia.