Exploring the JPMorgan Boycott Controversy Over Bitcoin Treasuries and Major Index Exclusion
MSCI’s recent consultation on digital asset treasury companies has sparked debate within the financial sector. This discussion comes at a critical time when institutional investment flows into Bitcoin (BTC) are shifting.
Key Developments in Bitcoin Exposure
By mid-2025, three main channels had emerged for institutional investment into Bitcoin, attracting significant capital:
- Regulated spot ETFs exceeding $100 billion.
- Mining operations that include Bitcoin exposure.
- Publicly traded companies holding Bitcoin on their balance sheets.
MSCI’s proposal focuses on the latter group, questioning whether these firms should be classified as operating companies or as investment funds.
MSCI’s Proposal and Timeline
The MSCI consultation suggests excluding companies with digital asset holdings over 50% from its Global Investable Market Indexes. The feedback period lasts until December 31, with decisions expected by January 15, 2026, and possible implementation in February 2026.
Impact of Potential Exclusions
JPMorgan’s analysis indicates substantial market implications. It estimates that approximately $2.8 billion in passive assets could be forced to sell if MSCI reclassifies certain companies. If other index providers like Russell also follow suit, total passive outflows could reach up to $8.8 billion.
Institutional Sentiment and Boycott Calls
This reclassification has drawn criticism toward JPMorgan. Many have called for a boycott of the bank and suggested shorting its stock, reflecting heightened tensions around Bitcoin’s role in traditional portfolios.
Growing Number of Companies Adopting Digital Asset Strategies
As of September 2025, more than 200 U.S. public companies had adopted digital asset treasury strategies, holding an estimated $115 billion in crypto. This marked a significant increase from $40 billion the previous year.
- Most of these companies are focused primarily on Bitcoin, with only a small number involved with other cryptocurrencies.
Challenges Faced by Digital Asset Treasuries
Many of these companies funded their crypto acquisitions through convertible notes and private placements. As stock valuations decline, they face pressure to liquidate crypto holdings to buy back shares.
For 2025, digital asset treasuries invested about $42.7 billion into crypto, including $22.6 billion in the third quarter alone.
Shifts in BTC Exposure Towards ETFs
As the industry moves, Bitcoin exposure is increasingly pivoting from treasury equities to regulated ETFs. Spot Bitcoin ETFs, like BlackRock’s IBIT, have amassed over $100 billion in assets within a year of launch.
MSCI’s Regulatory Influence
MSCI’s movements may instigate other index providers to reevaluate their treatment of digital asset treasuries. While Russell and FTSE Russell have not yet launched formal consultations, industry observers anticipate similar trends, given the broader regulatory scrutiny on digital assets.
Conclusion: Future of Bitcoin in Equity Benchmarks
MSCI’s decisions could redefine whether Bitcoin is classified within equity benchmarks or specialized crypto products. The outcome will not only influence index weights but will also impact who holds Bitcoin and how.
