MSCI (global index provider) Weighs Excluding Crypto-Holding Stocks — Potential ¥2 Trillion (Japanese yen) Sell Pressure
MSCI has opted against immediate removal of high crypto-holding firms, initiating broader consultations on treatment of non-operating companies after feedback from institutional investors.
Summary
MSCI announced on February 6 that it will not proceed with its earlier proposal to exclude firms holding more than 50% of their assets in cryptocurrency from its indices. The decision follows institutional investor concerns regarding the classification of such companies as investment-fund-like, prompting MSCI to launch wider consultations on non-operating company treatment. The move means firms like MicroStrategy will remain in MSCI indexes for now.
Terms & Concepts
- MSCI: A global provider of market indexes that guide investment portfolios and funds.
- Cryptocurrency: Digital assets secured by cryptography, typically recorded on a blockchain ledger.