MSCI Shelves Plan to Exclude Crypto Treasury Firms, Launches Wider Review
MSCI said Tuesday it has paused its proposal to remove digital-asset treasury companies (DATCOs) from its indexes and will launch a wider consultation on the treatment of non-operating companies across its benchmarks. The firm framed the move as a need to reassess methodology more broadly rather than apply a targeted exclusion, leaving current index compositions intact for now. The decision matters because index changes can trigger forced rebalancing by passive funds and ETFs, creating market impact for affected names. By opening a broader review, MSCI gives investors and issuers more time to respond and may shape a standard approach to non-operating entities beyond the crypto sector. Market participants will watch the consultation for guidance on eligibility rules that could influence valuations and index flows once revisions are finalized.