MSCI’s recent index move affecting MicroStrategy triggered outsized flows into equities and crypto, sparking short‑term Bitcoin weakness and higher volatility. The episode highlights how index actions can transmit to BTC through corporate proxies.
MSCI will not proceed with excluding digital-asset treasury companies from its indexes and instead will open a broader consultation on how to treat non-operating companies in benchmarks. The reversal delays a methodology change that could have affected passive funds and crypto-focused issuers.
Analysts estimate MSCI removals could trigger up to $11.6B in immediate outflows, with market observers warning knock-on effects may lift forced selling to roughly $15B.
Asset manager Strive criticized MSCI’s proposal to strip companies with Bitcoin treasuries from its indexes, warning the rule could distort benchmarks and harm diversified portfolios. The move raises questions about benchmark integrity and investor access to BTC exposure.
JPMorgan warned that a Strategy could be removed from the MSCI USA Index because of its Bitcoin holdings, a change that may force billions of dollars in index-driven outflows. The bank says the exposure to BTC is the key risk factor.
MSCI has proposed reclassifying companies with large Bitcoin treasuries as investment funds; Michael Saylor argues these are operating businesses holding Bitcoin as corporate balance sheet assets, not funds.