Bitcoin Policy Institute Challenges MSCI Index Rule Targeting Strategy, Metaplanet

MSCI Rule Faces Scrutiny From Bitcoin Advocates

The Bitcoin Policy Institute (BPI) has raised concerns about a proposed rule by MSCI regarding “non-operating companies,” arguing it could lead to the removal of Strategy and Metaplanet from MSCI indexes. The BPI published a paper detailing its analysis, suggesting the rule disproportionately impacts companies holding Bitcoin as a core asset.

The Proposed Rule and Its Potential Impact

MSCI’s proposed rule would classify companies without “principal business operations” as non-eligible for index inclusion. BPI argues this definition could be interpreted to exclude Strategy and Metaplanet, both of which hold significant Bitcoin positions on their balance sheets. The exclusion would likely trigger forced selling by index funds tracking those benchmarks.

Concerns Over Bias and Prior Review

The BPI’s paper suggests the current proposal isn’t a new development. It points to a 2022 MSCI consultation on crypto asset treasury management, where concerns were raised about the accounting and classification of digital assets. The institute posits that the new rule may be a continuation of that earlier scrutiny, potentially biased against companies adopting a Bitcoin standard. The BPI questions the transparency of the committee making these decisions, referring to it as an “invisible committee.”

Implications for Bitcoin Investment

The potential exclusion of Strategy and Metaplanet from MSCI indexes could have broader implications for institutional investment in Bitcoin. Index inclusion often drives demand as funds are obligated to mirror the index's holdings. Removing these vehicles could reduce access for investors who rely on index-based strategies. The BPI is calling for greater clarity and fairness in MSCI’s index methodology.

Source: Cointelegraph