MSTR Check-In: Bitcoin Standard ETF Filing Guide
The past few days have been filled with holiday festivities, but there was also some big news in the financial world as MicroStrategy joined the Nasdaq 100 index.
Many people were hopeful that this move would boost MicroStrategy’s stock price in the short term, but it hasn’t panned out that way just yet. As of 1 pm ET, MSTR’s share price had actually dropped by 22% since the market opened on Dec. 16, following the index inclusion announcement.
Experts suggest that end-of-year profit-taking, combined with recent declines in Bitcoin prices, may have contributed to MicroStrategy’s current price drop. However, the real significance of MSTR joining the index lies in the large funds that invest in Nasdaq 100 constituents, such as Invesco’s QQQ ETF, which manages a whopping $325 billion in assets.
Looking ahead to 2025, there is speculation about whether MicroStrategy could also find its way into the S&P 500. While this may seem like a bit of a long shot, analysts believe it’s an inevitable possibility in the near future.
MicroStrategy’s adoption of new accounting guidelines regarding Bitcoin on its balance sheet could help propel it towards positive earnings, setting the stage for potential inclusion in the S&P 500.
As more companies start to incorporate Bitcoin into their treasury assets, there is a growing trend towards creating investment opportunities centered around this digital currency. For example, asset manager Bitwise has proposed a Bitcoin Standard Corporations ETF, which would invest in companies with significant Bitcoin holdings in their treasuries.
MicroStrategy, with its substantial Bitcoin holdings, fits the criteria for this proposed ETF, as do other major Bitcoin miners like Marathon Digital, Hut 8, Riot Platforms, and CleanSpark.
In other news, Metaplanet recently purchased a significant amount of Bitcoin, boosting its total holdings even higher. And companies like KULR Technology Group are starting to dip their toes into the Bitcoin investment world as well.
Overall, the financial landscape is evolving as more companies embrace Bitcoin as a strategic investment. It will be interesting to see how this trend continues to unfold in the coming months.
