MSCI excludes Bitcoin funds Strategy and Metaplanet from stock indices

Bitcoin holders Strategy and Metaplanet, two of the largest cryptocurrency‑focused investment funds, will be removed from MSCI’s global equity indices under a new policy announced by the index provider on Monday. The decision means the funds will no longer be eligible for inclusion in the MSCI World, MSCI Emerging Markets and MSCI ACWI indexes that many institutional investors track for portfolio construction. MSCI said it would begin applying the change in the first quarter of 2025, after a review of the risk profile and regulatory exposure of crypto‑asset funds.

MSCI’s move follows a wave of heightened scrutiny of digital‑asset vehicles in 2023. Regulators in the United States and Europe tightened rules on anti‑money‑laundering compliance, and market volatility spiked after several high‑profile crypto crashes. The index provider cited “inherent volatility” and “uncertain regulatory status” as reasons for the exclusion. MSCI has already removed a handful of crypto‑focused ETFs from its indices in 2024, and the new rule expands that list to include more actively managed funds like Bitcoin holders Strategy and Metaplanet.

The two funds each hold over $1.5 billion in Bitcoin and other digital assets, representing 15–20 % of their total portfolios. MSCI’s criteria require that a fund’s crypto holdings be less than 5 % of the total assets for index eligibility. Both funds exceed that threshold, which is why they are being dropped. Fund managers have reacted with concern, warning that the exclusion could reduce liquidity and inflows, and they have said they will review their asset allocation to regain index status. Investors who track MSCI indices may see a shift in the performance of crypto exposure in their portfolios.

MSCI’s decision is expected to prompt a broader debate about how digital assets fit into mainstream investment frameworks. Some analysts predict that other index providers may follow suit, while others argue that the move could spur stricter regulatory oversight. The funds in question will have until the end of 2024 to adjust their holdings or appeal MSCI’s ruling. Institutional investors will need to reassess their exposure to crypto assets and consider alternative benchmarks that include digital‑asset strategies.