JPMorgan: If Strategy stocks are removed from the index, they may face billions of dollars in fund outflows

JPMorgan stated in a report on Thursday that if the global financial index company MSCI removes Bitcoin "vault giant" MicroStrategy (MSTR) from its stock index, the related outflow could reach up to $2.8 billion; if other exchanges and index providers follow suit, the total outflow could reach as high as $11.6 billion.

Analysts pointed out that the recent decline in MSTR's stock price—coupled with the overall weak performance this year—is more due to market concerns about its potential removal from MSCI and other indices like the Nasdaq 100 and Russell 1000, rather than a drop in Bitcoin's own price.

"It is precisely because of the inclusion in these indices that Bitcoin's exposure has indirectly permeated into the portfolios of retail and institutional investors," analysts wrote. "However, as MSCI now considers removing MicroStrategy and other companies primarily holding digital assets from the stock index, this previous indirect exposure may reverse."

MSCI is evaluating a proposal to exclude companies whose primary business is holding Bitcoin or other crypto assets, and where such assets account for more than 50% of their balance sheet.

MSCI stated last month that this "consultation" will continue until the end of this year, with a final decision to be made by January 15.