$15B Sell-Off Risk if MSCI Implements 50% Crypto DAT Rule

8 hours ago by · 2 mins read

MSCI’s proposal to remove crypto-heavy companies from its key indexes could cause $10B-$15B in outflows.

A whopping $15 billion could be forced out of crypto-linked stocks if MSCI moves ahead with a proposed rule change. If approved, the new guidelines would require major index-tracking funds to dump shares of companies holding more than 50% of their assets in crypto.

Meanwhile, crypto remains range-bound with Bitcoin BTC $89 121 24h volatility: 0.3% Market cap: $1.77 T Vol. 24h: $52.15 B stuck below $90K but institutions are not backing down. Glassnode has revealed that the average size of BTC treasuries held by public and private companies rose from 197K BTC to 1.08M BTC, a 448% surge since January 2023.

Why MSCI’s Rule Matters

MSCI is consulting investors on whether companies with more than 50% of their balance sheet in digital assets should be excluded from its core equity indexes.

These firms, popularly called digital asset treasury companies, raise capital through equity or debt and use much of it to buy assets such as Bitcoin.

MSCI indexes act as benchmarks for passive funds around the world. When a company is removed, funds that track those indexes must sell the stock, regardless of market conditions.

This is why the proposal has raised concern across the crypto space. MSCI plans to share its final view by January 15, with any rule change set to take effect during the February 2026 index review.

$10-$15 Billion in Potential Outflows

BitcoinForCorporations, a group opposing the proposal, estimates that forced selling could range between $10 billion and $15 billion. The group reviewed a preliminary list of 39 affected companies with a combined float-adjusted market value of about $113 billion.

Analysts working with the group calculated expected outflows of roughly $11.6 billion if these firms are removed.

One company alone, Strategy, accounts for about 74.5% of the total impacted market value, and could face around $2.8 billion in selling tied directly to MSCI-linked funds.

Investors were optimistic after Strategy remained in the Nasdaq 100 after its annual shuffle, but it continues to face scrutiny from index providers. The company has formally challenged MSCI’s proposal, adding that it is unfairly targeting a single asset class.

BitcoinForCorporations has gathered more than 1,200 signatures urging MSCI to drop the balance-sheet test. The group had a similar argument that judging companies by a single metric ignores their actual business operations, revenue, and customers.

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