Analysis: If crypto treasury companies are removed from MSCI, it could trigger an outflow of $10 billion to $15 billion in funds.
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TL;DR
If MSCI removes crypto treasury companies from its indices, it could force up to $15 billion in crypto asset sales, with MicroStrategy alone facing $2.8 billion in outflows, increasing selling pressure on the declining market.
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MSCIcrypto treasury companiesBitcoinfund outflowMicroStrategy
According to Mars Finance, on December 18th, BitcoinForCorporations released a report stating that if MSCI decides to remove crypto treasury companies from its indices, these companies could be forced to sell up to $15 billion worth of crypto assets. BitcoinForCorporations, an organization opposing the MSCI proposal, predicts an outflow of between $10 billion and $15 billion based on a verified preliminary list of 39 companies with a total market capitalization of $113 billion. The organization added that JPMorgan Chase's analysis estimates that if Michael Saylor's MicroStrategy is removed from the MSCI index, it could face an outflow of $2.8 billion. This Bitcoin treasury company accounts for 74.5% of the total market capitalization of the affected companies. Analysts calculate that the potential total outflow from all affected companies could reach $11.6 billion. Such a large outflow would put even greater selling pressure on the crypto market, which has been declining for nearly three months. As of press time, the "BitcoinForCorporations" petition has garnered 1,268 signatures.