The post Inside the JPMorgan boycott drama defending Bitcoin treasuries being kicked off major indexes appeared on BitcoinEthereumNews.com.

American financial services company MSCI’s October consultation on “digital asset treasury companies” arrived at a time when the mechanics of Bitcoin (BTC) exposure had already begun to fracture. By mid-2025, three roughly equal-sized channels funneled institutional capital into BTC: regulated spot ETFs managing north of $100 billion, mining operations with embedded BTC exposure, and a newer cohort of public companies whose primary business had become holding crypto on their balance sheets. MSCI’s proposal targets the third bucket and, in doing so, forces a reckoning over whether these firms are operating companies or passive funds in corporate costumes. The proposal itself reads like standard index housekeeping. MSCI floated excluding from its Global Investable Market Indexes any company whose digital-asset holdings exceed 50% of total assets, and invited feedback on whether firms that self-identify as digital asset treasuries or raise capital primarily to stack Bitcoin should face similar treatment. The consultation window runs through Dec. 31, with a decision due Jan. 15 and implementation penciled in for the February 2026 review. MSCI frames the question explicitly: do these stocks “exhibit characteristics similar to investment funds,” which already sit outside equity benchmarks? JPMorgan answered by modeling the fallout. Its November analysis pegged Strategy’s market cap at roughly $59 billion, with about $9 billion held by passive vehicles tracking major indexes. In a scenario in which MSCI alone reclassifies Strategy, roughly $2.8 billion in passive assets would be forced to sell. If Russell and other providers follow, mechanical outflows could reach $8.8 billion, according to a Barron’s estimate. The amount is framed as the second index shock after Strategy’s earlier exclusion from the S&P 500, and it triggered a backlash. JPMorgan faced scrutiny over front-running, with public calls to boycott the bank and to short its stock. The proxy-stock problem The anger reflects a…

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Filed under: News - @ November 25, 2025 6:29 pm