Yes

>>Urgent Alert: The removal of MSCI indices may cause a $2.8 billion strategy outflow by 2026.

Urgent Alert: The removal of MSCI indices may cause a $2.8 billion strategy outflow by 2026.

crypthub

3 days ago

Potential Outflows

JPMorgan warns that removal of Strategy from the MSCI index could trigger $2.8 billion of immediate fund outflows. If other index providers follow MSCI’s lead, total withdrawals could exceed $11 billion. The pressure comes from passive funds and institutional investors that must sell holdings when a company drops from an index.

Timeline and Market Impact

The next scheduled MSCI rebalancing is set for 15 January 2026, the key date for potential forced selling. Institutional managers often adjust positions months in advance, so market strain may appear well before the official cut‑off. Anticipated volatility could spread to related ETFs and broader market sentiment.

Investor Protection Strategies

Diversification, early portfolio rebalancing, and hedging with options are recommended to soften the blow. Tracking institutional ownership and fund‑flow data can provide early warning signals. Exploring non‑correlated assets offers a buffer against index‑driven shocks.

Why It Matters

As passive investing dominates capital flows, index inclusion decisions now move billions of dollars. A single removal can reshape a company’s investor base, liquidity, and valuation. Understanding these dynamics is essential for modern portfolio risk management.

Urgent Alert: The removal of MSCI indices may cause a $2.8 billion strategy outflow by 2026.

Potential Outflows

Timeline and Market Impact

Investor Protection Strategies

Why It Matters

Urgent Alert: The removal of MSCI indices may cause a $2.8 billion strategy outflow by 2026.