TLDR

• Bitwise criticizes MSCI’s proposed rule to exclude digital asset treasuries (DATs) from global indexes.
• The proposal targets companies like Michael Saylor’s Strategy, which holds over 50% of reserves in crypto.
• Bitwise argues that indexes should remain neutral and reflect the market, not evaluate specific business models.
• Bitwise defends Strategy’s value, claiming it provides unique exposure to Bitcoin’s growth potential.
• The firm urges MSCI to uphold high standards and avoid arbitrary exclusion of digital assets while overlooking other assets like oil and gold.

Bitwise, a crypto ETF issuer, has expressed its strong opposition to MSCI’s proposal to exclude digital asset treasuries (DATs) from its global indexes. The firm believes that the proposal introduces unnecessary subjectivity into what should be an objective, rule-based process. Bitwise argues that the move unfairly targets crypto assets and puts investors at a disadvantage.

MSCI’s Exclusion Proposal Targets DATs, Risks Subjective Criteria

Bitwise’s criticism centers on MSCI’s proposed exclusion of companies like Michael Saylor’s Strategy, which holds more than 50% of its reserves in crypto. The firm insists that indexes should remain neutral and objective, without reflecting the merits of individual business models. Historically, indexes have included companies with concentrated exposure to assets like oil or gold, and Bitwise argues that the same standard should apply to digital assets.

In a post on social media, Bitwise stated, “The power of an index lies in its neutrality. It should reflect the market, not evaluate business models.” This sentiment echoes concerns from Phong Le, CEO of Strategy, who pointed out that companies such as Chevron and Newmont, which hold large portions of their assets in oil and gold, do not face exclusion. By singling out crypto-focused companies, MSCI’s rule could create an unfair standard, Bitwise warned.

Bitwise Defends Strategy’s Value, Urges MSCI to Uphold Standards

Bitwise has defended Strategy, noting 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 Strategy, would disadvantage investors by removing access to cryptocurrency exposure. The firm described MSCI’s scrutiny as arbitrary, emphasizing that it unjustly targets digital assets while overlooking other global assets like oil and gold. Bitwise urged MSCI to maintain the high standards that have made its indexes global benchmarks and reflect the evolving landscape of financial technology.

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