MSCI Rule Could Remove Strategy From Indexes, Triggering $2.8B Selling
A proposed screening rule could also affect Metaplanet and Yellow Cake. Broader adoption by index providers could expand potential selling to $8.8 billion.
A proposed MSCI screening rule could remove Bitcoin-treasury company Strategy from major indexes, potentially prompting about $2.8 billion in selling by passive funds and affecting bitcoin-linked equities.
The rule would screen companies based on their operating assets, a change that could also place Japan-listed Metaplanet and uranium-holding company Yellow Cake at risk of exclusion from major indexes.
If other index providers adopt similar rules, the potential selling tied to Strategy could rise to about $8.8 billion. The potential flows would come from funds that track the affected indexes.
MSCI is expected to decide on the proposal by Oct. 16. Any resulting changes could take effect around Dec. 1 through the November index review.
