MSCI’s Crypto Treasury Review Threatens $15B Passive Sell-Off
Index provider MSCI's proposed reclassification of firms holding >50% digital assets could trigger $11.6B-$15B in forced selling from passive funds. The consultation period extends through December, with final implementation slated for February 2026.
Thirty-nine listed companies fall under MSCI's new 'digital-asset treasury' definition. Analysts warn of cascading effects if rival index providers follow suit—potentially magnifying outflows through secondary market impacts.
The decision reflects growing institutional scrutiny of crypto volatility. 'This isn't just about index mechanics,' says one portfolio manager tracking the consultation. 'It's a referendum on whether crypto-heavy balance sheets belong in traditional equity benchmarks.'