$BTC The strategy challenges MSCI's project to exclude treasury-focused bitcoin companies
According to Strategy, MSCI does not exclude other types of companies that concentrate their investments in a single asset class, including real estate investment trusts (REITs), oil companies, and media portfolios.
Therefore, the proposed policy change would demonstrate a biased position from MSCI regarding btc, rather than establishing the index provider as a neutral arbiter.
"Many financial institutions primarily hold specific types of assets, then bundle and sell derivative instruments backed by these assets, such as mortgage-backed securities," reads the letter.
The letter also states that companies managing digital assets are operational companies capable of actively adjusting their activities, citing as an example Strategy's credit instruments backed by btc.
It further claims that adopting this policy change would "undermine" U.S. President Trump's goal of positioning the United States as a global leader in cryptocurrencies.
Will the arguments work?
MSCI Inc.'s attempt to exclude companies focusing on managing cryptocurrency treasuries primarily stems from the Federal Reserve's view that high volatility in cryptocurrencies could amplify the volatility of the indices tracking these companies.
"The widespread use of leverage among cryptocurrency traders increases volatility and contributes to the fragility of crypto as an asset class," the Fed wrote in a publication on the subject.
MSCI also noted that companies using cryptocurrencies as capital lack clear and consistent valuation methods, complicating appropriate accounting and potentially distorting index values
