Key Highlights
- Bitwise opposes MSCI’s plan to remove Strategy from its key investment index.
- The company argues the rule change is flawed and limits investor access to digital assets.
- MSCI’s final decision in January 2026 will set a major precedent for the crypto industry.
Bitwise, a digital asset fund operator, has come out in support of Strategy, the largest corporate Bitcoin holder, in an ongoing dispute with MSCI, an index provider offered by Morgan Stanley Capital.
In an X post on December 12, Bitwise issued a firm statement opposing the change in classification for firms like Strategy. The company argued that MSCI’s act goes against the fundamental reason for market indexes.
The position made by Bitwise, recently put forth as part of a consultation, sets forth its position that this index should be neutral and not make judgments on specific business models. A determination on the status of Strategy’s index will be made by MSCI in mid-January 2026.
The argument for index neutrality
Bitwise expressed deep concern over MSCI’s plan to exclude Strategy from its widely followed Global Investable Market Indexes (GIMI), saying, “We are deeply disappointed by MSCI’s proposal to remove Strategy from its Global Investable Market Index. The index is intended to faithfully reflect the market, not to evaluate the merits of specific business models, and should maintain neutrality.”
Bitwise also opposed the idea that digital asset treasury (DAT) businesses are so easily replaceable with traditional financial instruments. The company argued that “Exchange traded products cannot replicate the way Strategy operates, and that Strategy has also created value for shareholders.”
The general criticism made by Bitwise here is that MSCI’s rule change proposal will eventually affect MSCI negatively because “the rule change proposed by MSCI deprives investors of the opportunity to invest in the digital asset class and its industry leaders, thereby putting investors at a disadvantage.”
Strategy’s initial response
Strategy previously launched a formal defense against MSCI’s proposed exclusion of Digital Asset Treasury (DAT) firms from its Global Investable Market Indexes. The firm’s chairman, Michael Saylor, has been in direct talks with MSCI, arguing that the proposed “50% rule” is discriminatory, demanding that index standards must remain “neutral, consistent, and reflective of global market evolution.”
The pushback has support from other firms, including investment company Strive, which also urged MSCI to rethink the plan. The high stakes of this decision are shown by analysis from firms like JPMorgan, which noted that the risk of exclusion and the associated potential for billions in passive fund sales have already been largely reflected in Strategy’s stock price since the consultation began.
MSCI’s proposed ‘50% Rule’
The controversy arises from an MSCI extensive review on considerations for including Digital Asset Treasury (DAT) stocks within its Global Investable Market Indexes. The review, which began back in October, targets companies whose operations are distinguished mainly by massive holdings of digital assets, with Strategy’s Bitcoins being among them.
MSCI is said to be pondering a “50% rule” under which it will exclude stocks belonging to companies that hold digital assets amounting to 50% or more of its total assets, as it considers that these businesses operate more as investment holding entities and less as operating businesses.
However, Strategy has disputed this manner of classification, as it considers itself an operating business that uses its own Bitcoins in generating a return on equity for shareholders.
Future market implications
The implications of an index removal review are considerable because large index funds follow the MSCI index series. A removal would imply possible mandatory sales of Strategy stocks by large index funds, amounting to billions of dollars, based on some investment house forecasts.
The MSCI decision on January 15 promises to be a defining period for the digital assets sector. A successful exemption will be an extremely influential determinant on how global index compilers will end up defining and listing these firms with clearly tangible digital assets. It may have a potentially damaging impact on encouraging passive investment into the sector, as other index compilers might follow suit.
On the other hand, if MSCI were to turn around and make changes to its criteria with Strategy included, then it would be seen as an indication that there is acceptance for the business models adapted from the digital economy. Irrespective of which side it goes, it seems that market implications have already been factored into a large extent regarding the implications from MSCI, as suggested by Bitwise CIO Matt Hougan.
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