msci

📅 November 20 | United States
A quiet but financially impactful move is shaking the global market: several stock market indices—including the giant MSCI—are eliminating cryptocurrency-linked exposure, which could trigger billions of dollars in outflows. According to a recent analysis by JPMorgan, this reconfiguration directly affects passive funds, ETFs, and institutional vehicles that rely heavily on these indices to determine their composition.

📖JPMorgan's analysis highlights a phenomenon that could alter the dynamics of the institutional market. The MSCI indices—along with other global indices—have begun to reduce or eliminate their exposure to companies with strong ties to cryptocurrencies. This decision implies immediate changes in the portfolios of funds that replicate these indices, especially so-called passive funds, which automatically move enormous volumes of capital.
This elimination could cause billions of dollars in outflows from companies associated with crypto activities. Although it does not specify a precise figure, it emphasizes that the impact will be “significant” due to the size of the assets managed by funds that track the MSCI, FTSE, and other international benchmarks.
The affected companies include firms related to Bitcoin mining, blockchain infrastructure providers, technology companies with direct exposure to digital assets, and even organizations with substantial revenues from the Web3 sector. By being excluded from these indices, these companies automatically lose the support of institutional flows that depend on strict inclusion criteria.
JPMorgan highlights that this trend is partly due to concerns about volatility, regulatory transparency, and reputational risks—factors that continue to hinder the full adoption of digital assets in traditional financial markets. Some indices are seeking to reduce exposure to sectors they still consider immature or with uncertain regulatory frameworks.
If more indices replicate this strategy, the market could experience a massive institutional reconfiguration, affecting prices, liquidity, and the visibility of crypto companies in public markets. For now, the bank warns that the upcoming quarterly rebalancing will be key to measuring the true magnitude of the outflows.

Topic Opinion:
I believe these exclusions are more symbolic than fundamentally impactful: the sector must continue moving towards clearer regulation, robust accounting metrics, and corporate practices that inspire trust. Even so, I'm convinced that the future of the ecosystem doesn't depend solely on indices. Innovation continues, infrastructure is improving, and real-world use cases keep growing.
💬 Do you think these mass exits will have a lasting impact on the crypto sector?

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#CryptoNews #JPMorgan #MSCI #FinancialMarkets #BTC $BTC

Could be fake, partially true, skewed, not entirely true, etc.
Recently came across a few posts and an exponential number of reposts taking the originals and their contents as gospel. 🤯😱
Deliberately created by people with a severe lack of ethics.
They Claim to have the truth about the market downturn, mass liquidation calls and subsequent crashes that put the cryptoworld and it's participants against the ropes since late August.
FACTS:
- Mass liquidations commenced in September. Not in October.
- MSCI considering delisting crypto-treasury firms (not materialised yet) was a consequence of September mass liquidations. Not a broad conspiracy as some of this post allege dumping dirt on #MSCI , #JPMorgan
- Further liquidation events were consequence of rapid sentiment trends shifts from #bullish to #bearishmomentum and extreme investor fear.
- Initial negative sentiment triggered by geopolitical turmoil amid power pushes between global powers.
OPINION:
Conclusion:
Liquidity crisis triggered by mass pull outs from institutional and heavy weight private investors driven by rapid shift in sentiment due to:

- Unhealthy levels of leverage affecting risk ratios combined with uncertainties on: global trade future landscape amid USA-china trade war and the use of tariffs as negotiation leverage. Fed's cash rate decision, Rusoo-Ukranian war and rhetoric escalation result of failed cease fire to achieve peace negotiations, adverse reporting on US unemployment rate, sanctions imposed to economies fueling directly and indirectly Russian war efforts. sharp decrease in crude ptices. potential imminent conflict between USA and Venezuela, US internal political landscape and government shutdown, reality (underperforming) vs expectations on Crypto ETFs launches.

MSCI index managers inconclusive deliberation regarding potential rules and policies changes on companies classification and eligibility criteria for their inclusion in the MSCI index; extremely unlikely the reason or considerable factor for the events leading to the cryptocurrency markets downturn as it is addressed in those posts.

Always DYOR
#Binance