$8.8 billion could flow out of Strategy’s stock if it is removed from MSCI indexes, compared with $2.8 billion according to the company’s earlier warning ⚖️ $BTC

An index is a list of stocks tracked by large funds. If a stock is removed from the list, those funds may have to sell it because they cannot hold stocks that aren’t included.

First, the decision covers Strategy, Japan’s Metaplanet, and the UK’s Yellow Cake, and takes effect on December 1, after MSCI determined that these companies are more like investment funds than operating companies.

Second, Strategy previously warned that an exit could trigger about $2.8 billion in stock sales, while JPMorgan estimated that outflows could reach $8.8 billion if other index providers followed suit. Both figures are estimates, not sales that have already taken place.

Third, MSTR shares fell 2.5% in after-hours trading following the announcement, and SharpLink, a company specializing in $ETH treasury management, was placed on the watchlist, meaning it is being monitored but has not yet been removed.

Bottom line: the date and the action are clear, but the scale of the selling is a possibility, not a confirmed outcome.

If you’ve held the coin for only a short time, you may want to keep an eye on December 1 and whether the selling by funds actually happens or remains just an estimate.

Which type of trader do you think is most affected by this news: long-term holders, active traders, newcomers, or miners? 👇

#BTC #MSCI

This content is for informational purposes only and is not financial advice.

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