MSCI index likely to kick out crypto treasuries, exec warns

Digital asset treasury companies may face significant pressure if MSCI excludes them from its index in January. An analyst believes the MSCI is inclined to exclude digital asset treasuries (DATs) that hold over 50% in crypto assets because they resemble investment funds not eligible for index inclusion. The consultation on this decision is open until December 31, 2025, with the results expected to be announced on January 15, 2026. If the exclusion occurs, index-tracking funds would likely sell affected assets, further impacting their market value. A JPMorgan note indicated that such a move could shed $2.8 billion in assets under management. Clearer classification rules surrounding corporate treasury decisions could ultimately bolster long-term institutional confidence, despite potential short-term negative effects on companies heavily invested in cryptocurrencies.

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