A serious conflict is brewing in the world of institutional investment. Strategy, a major bitcoin holder, has publicly criticized a proposal by index provider MSCI, calling the new rules for including issuers "discriminatory and arbitrary." The initiative in question could radically reshape the landscape of index investing in digital assets.
The Core of the Conflict: What MSCI Proposes
Under the new methodology, if less than half of a company's assets are not directly tied to its core business, such an issuer may be subject to additional scrutiny. In the worst case, it could be excluded from index baskets. Formally, this aims to enhance transparency, but in practice, it hits companies that are actively diversifying their reserves into cryptocurrencies.
My test calculations confirm that applying these criteria would automatically exclude two notable players—Strategy and Japan's Metaplanet. Additionally, SharpLink has been added to the watchlist, creating a precedent of uncertainty for the entire sector. MSCI is accepting feedback from market participants until September 30, with a final decision to be announced no later than October 16.
Analytical Perspective: Why This Is Dangerous
This move by MSCI is not just a technical adjustment. It is a signal that traditional index providers are attempting to restrict access for companies with crypto assets to passive investment flows. If the initiative is adopted, we will see not only a revision of index compositions but also potential pressure on the shares of such issuers from benchmark-oriented funds.
In my practice, this is the first time a player as large as MSCI has tried to introduce such stringent and, in my view, ambiguous criteria. The exclusion of Strategy—a company that has become a symbol of institutional bitcoin adoption—seems particularly telling. This creates a dangerous precedent: if major providers begin filtering issuers based on asset structure, the market could lose significant liquidity, and investors could lose the ability to legally diversify portfolios through public companies. However, there is still time until October, and judging by Strategy's tone, the fight for a place in the indices is just beginning.