Part 3/13:
Crucially, MSCI's indexes influence both passive investment flows and active management strategies. Funds tracking these indexes must buy or sell component stocks according to index membership, making MSCI's decisions highly impactful—small changes can trigger significant market activity and volatility during rebalancing events.
The Focus on Digital Asset Treasury Companies (DATs)
At the heart of the controversy lies MSCI’s proposal to revise how it classifies digital asset treasury companies (DATs)—businesses primarily holding cryptocurrencies like Bitcoin (BTC) as part of their assets. Notable among these is Strategy, a firm with the largest known corporate BTC treasury.