MSCI Proposal Puts $15B of Crypto-Linked Stocks at Risk of Forced Selling
MSCI, one of the world’s most influential index providers, is considering changes that could reshape how public companies with large cryptocurrency holdings are treated in global equity benchmarks.
The , now under consultation, could ultimately force the sale of up to $15 billion worth of crypto-linked stocks if adopted, according to market estimates.
As a key reference point for institutional investors, in assets are allocated across global markets. Passive funds, ETFs, and many active managers track or benchmark against MSCI indexes, meaning any change in index eligibility can have direct and immediate consequences for stock demand.
Why MSCI’s proposal matters for markets
At the center of the proposal is how MSCI defines an operating company. The index provider is assessing whether firms whose cryptocurrency holdings make up 50% or more of their total assets should remain eligible for inclusion in equity indexes.
MSCI has suggested that such companies may function more like investment vehicles than traditional businesses, raising questions about their suitability for broad market benchmarks.
If these companies are excluded, funds that track MSCI indexes would be required to rebalance their portfolios, potentially triggering forced tradeing. Analysts estimate that the resulting outflows could range between $10 billion and $15 billion, depending on the final scope of exclusions.
, is widely viewn as the most exposed name due to its sizable BTC treasury, holding over 671 BTC worth $59 billion at present time. Although several smaller crypto-linked firms could also be affected.
MSCI is expected to reach a final decision in January, with any approved changes likely implemented during its February index review.
Industry pushback highlights broader crypto-equity tension
However, the proposal has sparked resistance from parts of the market. Companies and crypto advocates argue that holding digital assets on the balance sheet does not strip a firm of its operating identity.
They warn that forced removals could , particularly for stocks with limited liquidity, and reduce investor access to a growing segment of the public market.
More broadly, the debate underscores a structural challenge for index providers as digital assets become more embedded in corporate finance strategies. The outcome of MSCI’s consultation could set a precedent for how traditional equity benchmarks adapt to companies that blur the line between operating businesses and crypto exposure.
