MSCI said it will not apply the proposal to exclude companies holding 50% or more of their total assets in cryptocurrency from its indices at the February regular review, and will retain current constituents. The decision follows concerns raised that some crypto-holding companies resemble investment funds rather than ordinary businesses, prompting plans to study whether they should be classified as non-operating asset-holding firms.
MSCI also noted that current index composition will stay; companies already in the index with 50% crypto holdings will remain, provided they meet existing criteria. It said it will not adjust share counts or widen foreign or domestic inclusion quotas, and it will postpone new inclusions or size-segment moves.
Because indices are widely used by institutional investors for ETF and index fund management, the ruling could influence multi-trillion-dollar flows. Industry observers have warned that if enacted, up to 39 companies could face $10-15 billion in forced selling.
Reaction from the market included Bitcoin for Corporations’ petition, which gathered 1,268 signatures calling for withdrawal of the proposal and arguing that a single balance-sheet metric is insufficient to judge a company’s business nature. Nasdaq-listed Strive Asset Management opposed the plan as well, proposing instead the creation of a separate ‘Digital Asset Holding Companies Excluded’ index.
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