Key Highlights
- JPMorgan warns MSCI may drop MicroStrategy, risking major passive outflows.
- Saylor argues MicroStrategy is a Bitcoin-backed operating firm, not a fund.
- Bitcoin slides to $81K, leaving many spot ETF holders in the red.
JPMorgan, the U.S. multinational banking institution, has warned institutional clients that MicroStrategy could face removal from major equity indices. This warning has prompted a sharp response from Michael Saylor as Bitcoin (BTC) tumbles to its lowest levels since April.
In a note circulated to select market participants, some market analysts commented that JPMorgan warns the fallout could be severe: as much as $2.8 billion in passive outflows if MSCI ejects MicroStrategy, and up to $8.8 billion if other index providers follow.
Saylor counters the warning
Matthew Sigel, Head of Digital Assets Research at VanEck, shared the note in an X post, which was not published publicly. According to him, the bank’s analysis states that MSCI is “considering removing MicroStrategy and other digital-asset treasury companies.”
MicroStrategy co-founder Michael Saylor swiftly responded to note in an X post, saying the framing misunderstands what MicroStrategy is and does. “We’re not a fund, a trust, or a holding company,” Saylor noted.
His comments underline a broader narrative: MicroStrategy wants to be seen not as a pseudo-ETF, but as a hybrid operating-plus-structured-finance enterprise built around Bitcoin.
Bitcoin slides into max-pain territory
The index concerns come amid one of Bitcoin’s sharpest sell-offs of 2025. BTC fell to $81,500, down 10% on the day and 15% this week. Traders are watching the $73K–$84K “max-pain” band that analysts say could trigger capitulation or a violent rebound.
Market data shows mounting strain across the market: many spot Bitcoin ETF investors are now underwater, BTC has fallen below its 50-week EMA for the first time since early 2024, and the total crypto market cap has dropped to $2.83 trillion even as trading volume jumped 39% amid accelerated forced selling.
Market analysts also comment on BTC ETF holdings, like Jim Bianco said:
What comes next
MSCI’s January decision could determine how global passive funds classify corporate Bitcoin exposure moving forward. If JPMorgan’s projections prove accurate, MicroStrategy’s share price and Bitcoin markets could face significant short-term volatility as index-tracking funds adjust positions.
Meanwhile, Saylor appears unfazed. As Bitcoin faces its sharpest correction in months, he continues to cast MicroStrategy as a “digital monetary institution” built entirely around Bitcoin’s long-term arc.
Also read: Bitcoin Traders Recorded Biggest Losses Since Collapse of FTX
