MSCI's Crypto Exclusion Plan Sparks Backlash from Strategy

Financial services firm Strategy has written to index provider MSCI, arguing that its proposal to exclude crypto-focused companies from the Global Investable Market Index is discriminatory and flawed.

The proposal would see companies classified as 'non-operating' removed from the index, which serves as a benchmark for many exchange-traded funds and institutional portfolios. Strategy claims that this definition is outdated and misleading, and that firms like itself and Japan's Metaplanet, which hold significant Bitcoin reserves, are indeed operational.

The company argues that excluding these firms would distort the index's representation of the market and potentially trigger price volatility if index funds are forced to sell their holdings. Strategy also notes that the move could reduce diversification for investors who rely on index funds to gain exposure to the crypto economy.