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

BlockBeats news, on November 21, JPMorgan stated in a report on Thursday that if the global financial index company MSCI removes Bitcoin “treasury giant” Strategy (MSTR) from its stock index, related fund outflows 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—stems more from market concerns that it may be removed by MSCI and multiple indexes such as Nasdaq 100 and Russell 1000, rather than from a drop in Bitcoin's own price. “It is precisely because of the inclusion in these indexes that Bitcoin's exposure has indirectly permeated into the portfolios of retail and institutional investors,” the analysts wrote. “However, with MSCI now considering removing MicroStrategy and other companies primarily holding digital assets from the stock index, this previous indirect penetration may reverse.” MSCI is evaluating a proposal to exclude companies whose main business is holding Bitcoin or other encryption assets, with such assets accounting for more than 50% of their balance sheets. Last month, MSCI stated that this “consultation” would continue until the end of this year and a final decision would be made by January 15.