ISTANBUL
Global index provider MSCI plans to exclude companies with a digital asset ratio above 50% from its main indexes from January 2026, fueling concern and uncertainty in the crypto market.
MSCI recently said it was still evaluating whether to remove these companies due to concerns that their business models resemble those of investment funds, as companies holding more than 50% of their assets in cryptocurrencies rely heavily on cryptocurrency purchases.
Following the announcement of MSCI’s plan, uncertainties have arisen in the crypto market – with concerns emerging over the sale of these companies’ shares by funds and asset management firms – a situation which could impact crypto prices.
MSCI is considering removing Strategy Inc., a business intelligence and mobile software company, from its index due to the company’s massive Bitcoin holdings, following warnings from JPMorgan and other market watchers about the index provider’s eligibility.
Strategy stocks are bracing for volatility if this move comes to fruition. Phong Le, CEO of Strategy, said he would consider selling Bitcoin if the company’s shares fell below their net asset value.
The MSCI exclusion system, however, is not the only agenda item keeping the crypto market on edge. The People’s Bank of China (PBoC) recently put the risks associated with crypto assets, particularly stablecoins, back on the agenda.
The bank signaled that its regulations would become even stricter, leading to increased selling pressure on crypto assets.
The PBoC reiterated its ruling that digital asset activities are illegal in China, doubling down on its crypto ban, which caused the crypto market to plummet and Bitcoin to lose 5% in the 24 hours following Monday’s announcement.
The bank remains committed to maintaining its strict crypto controls in its fight against illegal activities.
Bitcoin has since fallen to around $83,000 this week, due to regulatory pressure and MSCI uncertainty.
Sant Manukyan, deputy CEO of Turkey-based IS Investment, said MSCI’s decision may not have a direct impact on the crypto market.
Manukyan noted that while Strategy’s removal from MSCI indexes could cause the company to fall off the radar and JPMorgan has already reduced the value of its collateral for the company, the move may “not affect overall crypto market dynamics.”
“The plan to exclude Strategy is certainly important for the company, but it will not change the dynamics of the market,” he added.
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