JPMorgan Chase: S&P 500's Rejection of Strategy is a 'Blow' to Cryptocurrency Treasury

BlockBeats News, September 11th, according to The Block, Morgan Stanley analysts stated that the S&P 500 Index Committee rejected the inclusion of Strategy (formerly MicroStrategy) in the index last week, despite the company technically meeting the inclusion criteria, which was a "blow" to the cryptocurrency treasury.

Morgan Stanley analysts pointed out in a report on Wednesday that this rejection was not only a setback for Strategy, but also a blow to the rapidly growing number of similar companies in recent months. The analyst team led by managing director Nikolaos Panigirtzoglou of the bank stated that the index committee has discretion in the stock selection process, and this decision demonstrates a cautious stance towards those companies that convert their balance sheets into large holdings of Bitcoin.

The analysts noted that the exclusion from the S&P 500 means that the ability for this indirect channel to enter institutional and retail portfolios "may be nearing its limit." They added that the greater risk is that other index providers who have already included Strategy or other cryptocurrency treasury companies in their indices may reconsider their approach.