Bitwise has publicly pushed back against MSCI’s proposal to remove Strategy Inc. from its Global Investable Market Indexes, warning that the move could weaken the principle of neutrality that underpins widely used market benchmarks.
In a statement issued this week, the crypto asset manager said MSCI’s approach risks introducing subjective judgment into what is meant to be a transparent, rules-based indexing framework.
Key takeaways:
Bitwise opposes MSCI’s proposal to exclude Strategy Inc. from global indexes.
The firm says the move introduces subjectivity into index construction.
It warns investors could lose exposure to a fast-growing digital asset segment.
Bitwise argued that the primary role of an index is to reflect market composition, not to evaluate or penalize specific business models. According to the firm, introducing discretionary criteria tied to asset composition could blur the line between objective benchmarking and active decision-making.
The company noted that global indexes have historically included firms with concentrated exposure to single assets or sectors, ranging from commodity producers to real estate investment trusts. From Bitwise’s perspective, companies holding large digital asset reserves should not be treated differently simply because those assets are crypto-based.
Impact on Digital Asset Treasury Firms
The proposed change would not only affect Strategy Inc., Bitwise said, but could also extend to other companies that maintain significant digital asset treasuries. The firm warned that applying a threshold based on crypto holdings could establish a precedent that reshapes index eligibility across the sector.
Bitwise added that this approach risks marginalizing a growing segment of publicly listed companies that are increasingly integrating digital assets into their balance sheets as part of long-term strategies.
Investor Access and Market Representation
From an investor standpoint, Bitwise cautioned that removing Strategy from major indexes could reduce exposure to firms operating at the intersection of traditional finance and digital assets. The company emphasized that Strategy’s structure and treasury operations provide a different risk-return profile than bitcoin exchange-traded products.
According to Bitwise, excluding such companies could limit diversification opportunities and diminish the ability of indexes to reflect real-world market evolution.
Uneven Scrutiny on Crypto Exposure
Bitwise also criticized what it described as disproportionate scrutiny applied to digital assets compared to other asset classes. The firm argued that applying stricter standards to crypto-related exposure, while leaving other concentrated holdings untouched, could distort index construction over time.
In its view, this approach may discourage innovation and gradually reduce the relevance of traditional benchmarks as financial technology continues to advance.
Call for a Rules-Based Approach
The asset manager concluded by urging MSCI to uphold the principles that have historically defined its index methodology. Bitwise called on the provider to ensure its benchmarks remain objective and adaptable, allowing them to reflect changes in the global economy as new asset classes gain prominence.
