MSCI Maintains Inclusion of Crypto Treasury Firms in Indexes, Averting a Major Market Sell-Off

Index provider Morgan Stanley Capital International (MSCI) will delay any potential exclusion of companies with substantial cryptocurrency reserves from its global indexes until its 2026 review. This decision prevents an immediate market sell-off and provides time for further analysis of corporate crypto strategies.

The move follows a public consultation in early 2025, where asset managers and publicly listed companies expressed concerns about premature exclusion. MSCI cited the evolving nature of crypto accounting standards and regulatory clarity as reasons for its cautious stance.

Companies like MicroStrategy, which hold significant Bitcoin reserves, will continue to remain in MSCI's indexes until at least 2026. This decision stabilizes their access to capital and avoids forced selling pressure from index-tracking funds.

Why the Move Happened

MSCI initially proposed excluding firms with over 50% of their assets in crypto, but industry feedback led to a delay. The firm emphasized the need for a broader review to determine if digital asset treasury companies are primarily investment-focused or operational according to MSCI's analysis.

Industry players and regulators highlighted the lack of mature accounting and legal frameworks for digital assets. MSCI's decision reflects a wait-and-see approach, allowing time for regulatory and accounting standards to evolve.

The decision also avoids triggering an estimated $15 billion in forced selling by ETFs and mutual funds that track MSCI's benchmarks. Analysts at JPMorgan estimated $2.8 billion in potential outflows, while advocacy groups projected higher figures.

How Markets Reacted

Shares of MicroStrategy (MSTR) rose over 5% in after-hours trading following the announcement. The company had previously expressed concerns about a potential exclusion, which could have led to a $2 billion loss in market value.

Other digital asset treasury companies also saw positive reactions. Metaplanet Inc. (Tokyo: 3350) closed the day up 8.9%, indicating broader bullish sentiment in the sector.

The continued inclusion of crypto treasury firms in MSCI's global indexes is seen as a significant boost for the broader digital asset market. It supports ongoing demand for Bitcoin and could lead to higher institutional investment in crypto.

What Analysts Are Watching

Financial experts are monitoring the next two years for regulatory and market developments. The 2026 review will likely assess corporate performance through different market cycles and the evolution of accounting standards.

Analysts are also watching for regulatory clarity from bodies like the U.S. Securities and Exchange Commission (SEC). The final decision in 2026 will depend on the data and market conditions available at that time.

Market observers will track how institutional investors adjust their policies on crypto exposure. The decision also sets a precedent for other index providers like S&P and FTSE Russell, who may follow MSCI's lead.