MSCI Consultation Affects Crypto-Adjacent Names in Index Family

The iShares MSCI World ETF has reached its all-time high of $212.08, but its future composition may be affected by a consultation from index provider MSCI.

MSCI is proposing an eligibility test for 'non-operating companies' that hold cryptocurrencies on their balance sheets. This could lead to the exclusion of names such as Strategy, Metaplanet, and Yellow Cake from the broader MSCI ACWI IMI.

JPMorgan estimates potential passive outflows from Strategy at $2.8 billion for 2025, highlighting the significance of this change.

The ETF tracks the developed-markets index, but investors should be aware that structural changes can occur with lead time. Market participants have until September 30 to submit feedback on the proposal.