Bitwise Fights MSCI Rule Change, Defends Crypto Strategy’s Role in Global Indexes

Bitwise just threw a punch at MSCI's rulebook. The crypto asset manager is publicly opposing a proposed index rule change, arguing it would unfairly sideline cryptocurrency strategies from the global stage.

The Index Gatekeepers

MSCI, one of finance's heavyweight index providers, sets the rules for what gets included in the benchmarks that guide trillions in institutional capital. Their proposed tweak? A move that could lock crypto-focused strategies out of key global indexes.

Bitwise isn't having it. They're mounting a defense, claiming their strategy deserves a seat at the table—arguing that digital assets are now a legitimate, uncorrelated part of a modern portfolio. It's a fight over classification, and the stakes are access to the mainstream money.

Why This Fight Matters

This isn't just bureaucratic squabbling. Inclusion in major indexes is a liquidity lifeline. It signals legitimacy to pension funds and endowments still wary of the 'crypto' label. Exclusion reinforces the old walled-garden thinking—treating digital assets as a speculative sideshow rather than a core asset class.

Bitwise's pushback highlights a growing tension: traditional finance's rulemakers are scrambling to categorize an asset that refuses to fit neatly into their existing boxes. Sometimes it feels like they'd rather debate the filing cabinet than acknowledge what's inside.

The Bottom Line

The outcome of this skirmish will signal how seriously the old guard takes the new world. Will the indexes adapt, or will they force innovation to conform to outdated frameworks? One thing's clear: the industry won't wait for permission to build the future of finance—even if that means bypassing the gatekeepers entirely.

Bitwise Calls for Index Neutrality Amid MSCI Review

The company claimed that the indexes had to be based on the market structure, rather than on business preferences. Bitwise claims that the proposal generated by MSCI presents subjective judgment. It cautioned that this would mislead the investors about the market. Bitwise said index neutrality should be the priority.

The controversy comes after MSCI reviewed Digital Asset Treasury companies. These companies have high amounts of digital assets on their balance sheets. The largest corporate bitcoin holder, Strategy, is placed at the center of the review. This process started in October at MSCI.

MSCI’s 50% Rule Faces Pushback From Bitwise

MSCI is thinking of the implementation of a 50% rule as part of the review. The proposal would eliminate companies whose digital assets comprise at least half of total assets. MSCI considers these companies to be like investment holding companies. This classification has been severely criticized.

Bitwise disagreed with such reasoning. The company indicated that Strategy is a dynamic business, not a passive investment vehicle. It also contended that exchange-traded products could not reproduce the structure of Strategy. Bitwise concluded that Strategy has provided shareholder value in its approach.

The company also questioned investor influence. Bitwise asserted that the offer would limit contact with the leaders of digital assets. Investors with passive funds would no longer have access to a thriving industry, it warned. Bitwise believes such an approach would disadvantage investors.

Strategy Pushes Back as Saylor Calls MSCI Rule Discriminatory

Strategy has taken its own defense. During the consultation period, Chairman Michael Saylor has been directly involved with MSCI. He described the proposed rule as discriminatory. Saylor stated that index standards should be in line with the global market revolution.

Strategy has submitted its response to MSCI’s consultation on digital asset treasury companies. Index standards should be neutral, consistent, and reflective of global market evolution. Read our letter and share your support: https://t.co/yiPRYyw5Lk

Strategy asserts it is an operating company. The company claims that it uses Bitcoin as a means of supporting long-term equity returns. It refutes assertions that its balance sheet characterizes it as a holding entity. Strategy says that innovation does not bring about exclusion.

Other firms have echoed these concerns. The MSCI has been urged by Strive, an investment corporation, to rethink its proposal. Market analysts have also emphasized the potential risks associated with index removal. JPMorgan added that fears of forced selling have already taken place in Strategy stock.

The pressure is still severe because of the impact of MSCI. MSCI indexes follow trillions of dollars worldwide. An elimination would cause forced sales with index funds. Some projections indicate that the asset could sell for billions of dollars.

MSCI is expected to publish the decision on January 15. The result may influence the treatment of digitally heavy companies by the index providers. A positive decision could lead to greater acceptance of digital assets. This exclusion potential would slacken passive investment throughout the industry.