TLDR
- Bitwise criticizes MSCI’s proposed rule to exclude digital asset troves (DATs) from global indices.
- The proposal is aimed at companies like Michael Saylor’s Strategy, which holds more than 50% of cryptocurrency reserves.
- Bitwise maintains that indices should remain neutral and reflect the market, not evaluate specific business models.
- Bitwise defends the value of Strategy, stating that it provides unique exposure to Bitcoin’s growth potential.
- The firm urges MSCI to maintain high standards and avoid arbitrary exclusion of digital assets while overlooking other assets such as oil and gold.
Bitwise, a cryptocurrency ETF issuer, has expressed strong opposition to MSCI’s proposal to exclude digital asset treasuries (DATs) from its global indices. The firm believes the proposal introduces unnecessary subjectivity into what should be an objective, rules-based process. Bitwise maintains that the move unfairly targets crypto assets and puts investors at a disadvantage.
MSCI exclusion proposal focuses on DATs and risks, subjective criteria
Bitwise’s criticism focuses on MSCI’s proposal to exclude companies like Michael Saylor’s Strategy, which holds more than 50% of its reserves in cryptocurrencies. The firm insists that indices must remain neutral and objective, without reflecting the merits of individual business models. Indices have historically included companies with concentrated exposure to assets like oil or gold, and Bitwise maintains that the same standard should apply to digital assets.
In a social media post, Bitwise stated: “The power of an index lies in its neutrality. It should reflect the market, not evaluate business models.” This sentiment echoes the concerns of Phong Le, CEO of Strategy, who noted that companies like Chevron and Newmont, which hold much of their assets in oil and gold, do not face exclusion. By singling out cryptocurrency-focused companies, MSCI’s rule could create an unfair standard, Bitwise warned.
Bitwise defends the value of the strategy and urges MSCI to maintain standards
Bitwise has defended the strategy, highlighting its role in the modern economy and its value to shareholders. The firm highlighted how Strategy operates differently from Bitcoin ETFs, offering unique exposure to Bitcoin’s growth potential. In this context, Bitwise expressed confidence in the long-term success of Strategy’s Bitcoin-focused operations.
According to Bitwise, the exclusion of DATs, including the strategy, would harm investors by removing access to cryptocurrency exposure. The firm described MSCI’s scrutiny as arbitrary, emphasizing that it unfairly targets digital assets while overlooking other global assets such as oil and gold. Bitwise urged MSCI to maintain the high standards that have made its indices global benchmarks and reflect the evolving financial technology landscape.