BPI Raises Concerns Over MSCI’s Index Proposal for Crypto Firms
- MSCI has proposed tightening rules for its market indexes, potentially classifying companies like Strategy and Metaplanet as “non-operating businesses.”
- In a simulation, MSCI indicated that removing these firms could lead to approximately $2.8 billion in outflows from funds tracking its benchmarks.
- The new assessment method includes evaluating substantial operating assets and applying five additional financial tests.
- BPI criticized MSCI’s definition of “operating assets,” noting it lacks standardization under US GAAP or IFRS.
- Feedback on the proposal was accepted until September 30, with results expected by October 16.
The potential exclusion of digital asset treasury firms from MSCI indexes raises significant concerns about market impacts and asset classification standards. BPI argues for clearer criteria to determine eligibility for broad-market indexes.
If implemented, these changes could significantly affect companies like Strategy and Metaplanet, leading to substantial financial repercussions as indicated by the projected $2.8 billion in outflows.(Source)
