The Nasdaq 100, a technology-driven index, is nearing its 40th anniversary amidst a potential historic transition. Todd Sohn of Strategas Securities suggests that companies within the cryptocurrency realm may be the driving force behind future growth. Sohn compares Bitcoin to the QQQ (an exchange-traded fund that tracks the Nasdaq 100), asserting that they are both significant entities within their respective sectors.

By the close of Thursday, the Nasdaq 100 had seen a staggering increase of 17,106% since its inception on January 31, 1985. The election of President Donald Trump, coupled with expectations of deregulation, led to a surge in Bitcoin, pushing its value to around $104,000.

Sohn believes that the expansion of the cryptocurrency sector is already underway, as evidenced by recent filings. Furthermore, he highlights the growing interest in crypto options – a development that enables risk management within the industry. He suggests that a covered call crypto ETF, for instance, can offer investors the potential for profits while providing a steady income stream, hence limiting volatility.

The market for crypto ETFs is experiencing a significant boom. For example, the iShares Bitcoin Trust ETF (IBIT) by BlackRock, which debuted on the Nasdaq on January 5, 2024, managed to accumulate over $58 billion in assets by Tuesday.

Nasdaq President Nelson Griggs asserts that regulatory clarity will be a crucial factor in the continued growth of the crypto sector. He believes that the development of a whole sector around digital cryptocurrency, along with clear rules, will be instrumental in shaping its future.

In conclusion, the expansion of the cryptocurrency sector, coupled with the growing interest in crypto options, is setting the stage for a potential historic shift in the Nasdaq 100 as it approaches its 40th anniversary.