Bitcoin Firm Fold Holdings Joins Russell 2000 Index: Crypto’s Mainstream Leap
Another brick in the wall—traditional finance just got a crypto-shaped addition.
Fold Holdings, a company built around Bitcoin rewards and spending, just secured a spot in the Russell 2000 Index. This isn't just a portfolio update; it's a signal flare. The index, a benchmark for small-cap U.S. stocks, now officially counts a pure-play Bitcoin firm among its ranks. It marks a quiet but significant crossing of the Rubicon for digital asset companies seeking legitimacy in the eyes of institutional capital.
The Institutional Stamp
Inclusion in a major index isn't about a press release. It triggers automatic buying from the billions in funds that passively track these benchmarks. That means real, sustained capital flow from investors who might not know a private key from a house key. It grants Fold a visibility and credibility that marketing budgets can't buy, placing it alongside thousands of other established public companies.
Why This Move Cuts Through the Noise
Forget the hype cycles and the influencer chatter. This is a compliance-heavy, paperwork-saturated process. It means Fold navigated the same rigorous governance, liquidity, and reporting standards as any other listed company. In a sector often criticized for operating in the shadows, this is a move conducted entirely in the glaring light of regulatory and financial scrutiny. It's a play for permanence, not just attention.
A New Playbook for Crypto Value
This event writes a fresh chapter. Success is no longer measured solely by token price or user counts. Traditional metrics—revenue, EBITDA, shareholder equity—become the new scoreboard. It forces a maturation, pushing crypto-native firms to speak the language of Wall Street while still building for the decentralized future. The game isn't changing; an entirely new arena is opening up.
The finance world loves to co-opt what it once mocked—just look at the rush into 'alternative' assets once they hit a critical mass. Fold's inclusion feels less like an invitation and more like an inevitable annexation. The real test? Seeing if the disruptive ethos of crypto can survive the soul-crushing embrace of quarterly earnings reports and analyst downgrades. The indexing is complete. The assimilation has begun.
Has Fold Holdings been included in the Russell 2000 Index?
Fold Holdings announced its inclusion in the Russell 2000 Index on December 22. The Russell 2000 tracks small-cap U.S. stocks, representing approximately 5-7% of the U.S. public equity market capitalization, and serves as a benchmark for mutual funds, ETFs, and other asset managers.
Will Reeves, Fold’s Chairman and CEO, said the inclusion validates the company’s position as a successful public company. He expects the listing to broaden market awareness and increase visibility among institutional and retail investors.
Fold operates as a bitcoin financial services firm focused on making it easy for individuals to earn, save, and spend Bitcoin through everyday financial tools, including its Bitcoin Gift Card and upcoming Fold Bitcoin Rewards Credit Card.
Will Bitcoin-holding firms be excluded from indexes?
MSCI, a major index provider, proposed in October to remove companies whose digital asset holdings represent 50% or more of their total assets from its global benchmarks. The firm argues these companies are more similar to investment funds rather than operational businesses, which MSCI does not include in its indexes.
Strategy, formerly known as MicroStrategy and led by Bitcoin advocate Michael Saylor, saw its shares surge 3,000% after it began purchasing Bitcoin in 2020.
Analysts estimate that exclusion from MSCI could trigger $2.8 billion in outflows. And that figure could rise to $8.8 billion if other indexes follow suit. JPMorgan’s analysis suggests Strategy has $2.5 billion of market value from MSCI membership and $5.5 billion from other indexes, making up a significant portion of the company’s $45 billion market value.
Michael Saylor initially dismissed concerns about MSCI exclusion, but later, through a public letter co-authored by Strategy’s CEO Phong Le, the pair warned that digital asset treasury exclusion WOULD result in $2.8 billion of stock liquidation and “chill” the industry.
The executives argued the proposal would deprive these companies of about $15 trillion in passive investments.
Why is MSCI’s decision on digital asset treasuries important?
MSCI’s consultation period runs until January 15, 2025, when a final decision will be announced. According to Kaasha Saini, head of index strategy at Jefferies, the eligibility of digital asset treasury companies in equity indexes generally will be affected by this decision. She expects most equity indexes would MOVE to follow MSCI’s lead if exclusion occurs.
Saini pointed out that passive asset managers hold an estimated 30% of a large-cap company’s free float, which creates a significant problem for digital asset treasury companies, as many of them fund their token purchases by selling stock.
As of September, at least 200 digital asset treasury companies had a combined market capitalization of around $150 billion, more than triple the figure from a year earlier, according to law firm DLA Piper.
MSCI’s preliminary list names 38 companies at risk of exclusion, with a combined issuer market cap of $46.7 billion as of September 30.
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