Key facts
- MSCI is proposing new rules for its Global Investable Market Indexes.
- The proposed rules could exclude companies that are primarily Bitcoin holders.
- MicroStrategy and Metaplanet are identified as potentially impacted companies.
- Feedback on the Bitcoin-related proposal is due by September 30.
- MSCI is updating its MSCI China Index in its August review.
- 33 companies are being added to the MSCI China Index.
- Zhipu AI and several semiconductor firms are among the additions to the China Index.
- 32 companies are being removed from the MSCI China Index.
- China Vanke and GCL Technology are among the companies being removed from the China Index.
- Changes to the MSCI China Index are effective August 31.
Index provider MSCI is considering new rules that could lead to the exclusion of companies whose primary business is holding Bitcoin from its Global Investable Market Indexes. This potential change could significantly impact major Bitcoin holders like MicroStrategy and Metaplanet. The proposal is currently open for public feedback, with comments due by September 30.
In parallel, MSCI is implementing changes to its MSCI China Index as part of its August review. The index provider will add 33 companies to the index, including prominent names such as AI developer Zhipu AI and several semiconductor firms. Concurrently, 32 stocks are slated for removal from the index. Among the companies to be removed are China Vanke and GCL Technology. These adjustments to the MSCI China Index will take effect on August 31.
The proposed exclusion of non-operating companies from global indexes highlights a growing distinction in how index providers categorize and include assets. Companies that are primarily holding digital assets like Bitcoin may face challenges in meeting the criteria for traditional equity indexes, which often focus on operating businesses with tangible assets and revenue streams. The feedback period for this proposal indicates MSCI's willingness to consider market input before finalizing any rule changes.