MSCI Slammed For Bitcoin Exclusion: "It’s Like Blaming Chevron For Oil"

Index giant MSCI faces fresh criticism for keeping Bitcoin off its mainstream financial products. Critics call the omission a glaring blind spot in modern portfolio construction.

The Analogy That Stings

The backlash centers on a pointed comparison: faulting MSCI for excluding Bitcoin is like blaming an oil company for the existence of crude. The argument suggests the index provider is being penalized for not embracing an asset it was never built to hold—a digital commodity operating outside traditional market rails.

Old Guard Meets New Money

MSCI's frameworks, the bedrock for trillions in institutional capital, weren't designed for 24/7 decentralized networks. Incorporating Bitcoin would mean overhauling risk models, custody solutions, and regulatory assumptions. For now, the firm treats crypto more like a speculative tech stock than a foundational monetary asset—much to the chagrin of digital asset advocates.

The Institutional Standoff

This isn't just academic. Pension funds and asset managers rely on MSCI's classifications to allocate capital. Omitting Bitcoin from major indices keeps it sidelined in countless investment mandates, reinforcing the divide between crypto-native portfolios and legacy finance. Some see it as prudent risk management; others call it a failure to adapt.

A Cynical Take

Let's be real—this is the same industry that took decades to acknowledge the internet wasn't a fad. Traditional finance moves at the speed of regulatory compliance, not innovation.

The standoff highlights a core tension: can legacy systems built for stocks and bonds ever fully embrace an asset designed to bypass them? Until that question gets a real answer, expect more heated analogies—and more missed allocations.

Impact Estimates Suggest Billions Could Move

Based on reports from banks and analysts, the potential impact could be large. JPMorgan estimates show that MSCI-only adjustments might trigger forced selling of about $2.8 billion, while the figure could climb to $8.8 billion if other index providers follow suit.

Stocks of companies holding Bitcoin have already felt pressure. Strategy (ticker MSTR), the largest corporate Bitcoin holder, has been in direct talks with MSCI, seeking to clarify its position and prevent removal from key indexes.

Phong Le joined @SchwabNetwork to discuss the $60T digital credit opportunity and response to MSCI. Restricting passive index investment in bitcoin today would be like restricting investment in oil and oil rigs in the 1900s, spectrum and cell towers in the 1980s, or compute and… pic.twitter.com/3VcYnF5nE4

— Strategy (@Strategy) December 10, 2025

Who Could Be Affected And Why

The review focuses on so-called “digital-asset treasury” firms — companies that might behave more like investment vehicles if a large portion of their assets sits in cryptocurrency.

According to circulated consultation documents, the 50% threshold defines the most extreme cases. Some analysts warn the cutoff is blunt and could misclassify companies that run genuine businesses while using crypto as a treasury reserve.

A coalition of bitcoin-focused companies and trade associations has publicly opposed the move. They argue that excluding these firms WOULD force passive funds tied to MSCI indexes to sell holdings mechanically, even when they are part of operational businesses.

Reports have disclosed letters, interviews, and lobbying efforts aimed at influencing MSCI’s final decision. Market participants say the pushback highlights the tension between traditional index rules and companies with unconventional asset allocations.

The consultation window is expected to close around Dec. 31, 2025, with some reports suggesting MSCI could announce a decision by mid-Jan 2026.

If the exclusions are enforced, passive funds tracking MSCI indexes may need to rebalance, which could create mechanical selling pressures for affected stocks. However, feedback during the consultation could still alter the outcome before any final rules are adopted.

Beyond short-term market moves, investors now face questions about which listed firms cross the 50% threshold, how indices should treat non-traditional assets, and whether other index providers will adopt similar rules.

The choices MSCI makes could affect billions of dollars in flows and reshape how publicly traded companies approach holding cryptocurrency.

Featured image from Unsplash, chart from TradingView