MSCI may exclude financial companies like Strategy Inc from its index, which could result in the outflow of billions of dollars from the encryption industry.

The global Crypto Assets industry is on high alert, preparing to respond to potential turmoil. Major index provider MSCI is weighing whether to exclude companies with significant digital assets from its flagship stock Benchmark index. Analysts warn that this move could result in billions of dollars in passive outflows early next year.

The discussion began in October and has now become more urgent. Previously, MSCI confirmed that it is consulting with the investment community on whether companies holding more than 50% Bitcoin or other Crypto Assets on their balance sheets should continue to meet the inclusion criteria.

Current feedback indicates that many investors believe that Digital Asset Financial Company (DAT) behaves more like an investment fund rather than a traditional operating business. MSCI typically does not allow such companies to be included in its core stock indices.

The review will last until December 31, with the final decision expected to be announced on January 15, and the index adjustments will take effect in February. The preliminary list includes 38 companies under review, including Michael Saylor's Strategy Inc, Sharplink Gaming, Riot Platforms, and Marathon Digital.

JPMorgan released a report this week warning that if MSCI removes DATs, the market value of Strategy Inc could lose up to $2.8 billion. Currently, approximately $9 billion of the company's market value, which is around $56 billion, is held by passive index funds. MSCI is expected to make a decision by January 15, 2026. (Cryptonews)