MSCI is reviewing the inclusion of companies holding bitcoin in its indices, prompting reassessment across several market benchmarks.

VanEck estimates that removal could cause an outflow of $2.8 billion from MicroStrategy and up to $8.8 billion across broader indexes.

MSCI review and estimates

MSCI, formerly Morgan Stanley Capital International, has signaled a review focused on companies with direct bitcoin holdings and index eligibility.

The assessment referenced in market commentary follows a report by JPMorgan that highlighted potential index composition issues and methodology questions.

Market reaction and withdrawals

The JPMorgan report triggered an immediate response, with market participants accusing the bank of exerting pressure on DAT and initiating withdrawals.

Several trading desks and online forums reported accelerated redemptions and position adjustments in funds tied to the affected index constituents.

Potential flows and implications

VanEck's calculations single out MicroStrategy for potential redemptions totaling $2.8 billion, while aggregate exposures in other indices could reach $8.8 billion.

Index reweighting or exclusion could force index-tracking vehicles to rebalance holdings, potentially creating liquidity pressure for the most affected securities.

MicroStrategy's response

Michael Saylor said a potential exclusion would be a mistake.

He emphasized that MicroStrategy functions as an operating company with active activities and digital debt instruments, not as a passive bitcoin holder.

MSCI has not announced a formal decision and says consultations remain ongoing, with any changes dependent on methodology reviews and stakeholder feedback.

Index providers and fund managers now face decisions over methodology, rebalancing timelines and investor communication as markets digest the developments.