Wall Street Stays Bullish on Bitcoin Amid MSCI Exclusion Threat

Precedent & Market Context

The threat of MSCI's new rules, which target digital asset treasury firms, has raised concerns about the future of Bitcoin on Wall Street. However, CryptoQuant CEO says that Wall Street remains bullish on Bitcoin strategy despite this threat.

Main Event

The new rules, which will take effect at the close of November 30, 2026, aim to exclude companies whose digital asset holdings make up at least 50% of their total assets from MSCI's Global Investable Market Indexes. This move comes after MSCI previously considered excluding companies whose digital asset holdings made up at least 50% of their total assets. Bitcoin treasury company Strategy had opposed this proposal as well.

Analysis & Market Impact

CryptoQuant CEO believes that MSCI's new rules target digital asset treasury firms under a different name and question the definition of a non-operating company. The company also asserts that its Bitcoin business qualifies as an operating segment under US accounting rules, consistent with discussions with SEC staff. MSCI's proposal introduces policy judgments into index construction and could undermine the neutrality investors expect from the provider.

Implications & Outlook

The process starts with a check for substantial operating assets. Companies that fail face a second test based on five financial ratios. These cover expenses, cash flow, changes in asset values, as well as reliance on outside financing. A company flagged on at least four ratios becomes ineligible. MSCI will also use safeguards to limit frequent index changes. Existing members must fail the test in two consecutive annual filing periods to face removal.

• MSCI's new rules target digital asset treasury firms, which could lead to Bitcoin's removal from major global stock indexes.
• CryptoQuant CEO believes that MSCI's rules target digital asset treasury firms under a different name and question the definition of a non-operating company.
• Bitcoin treasury company Strategy asserts that its Bitcoin business qualifies as an operating segment under US accounting rules, consistent with discussions with SEC staff.

A photo of a trader on Wall Street, looking at a screen with a Bitcoin price chart, with a determined expression on their face, symbolizing the bullishness of Wall Street on Bitcoin despite the MSCI exclusion threat.