Index Methodology

SpaceX

2026-08-31 08:27:05

SpaceX Gets a Fast Track Into the Nasdaq-100, While the S&P 500 Keeps Its Profit Rule Intact

SpaceX was added to the Nasdaq-100 on July 7, 2026 under Nasdaq’s revised 15-trading-day fast-track rule, but the company still faces a longer wait for the S&P 500 after the S&P Dow Jones Indices committee rejected a proposal to create any similar shortcut. The committee kept its hard requirement that a company must post positive GAAP net income in the most recent quarter and across the last four consecutive quarters, meaning SpaceX may not be eligible for the S&P 500 until 2027 at the earliest. The split outcome highlights a basic point about passive investing: index inclusion depends on methodology, not on a single market narrative. The article walks through four core parts of index construction—selection, weighting, calculation, and rebalancing review—and shows how those rules shape different results across major benchmarks such as the S&P 500, the Nasdaq-100, the Dow Jones Industrial Average, and the Hang Seng TECH Index. It also explains why investors care so much about index additions. Coinbase’s admission to the S&P 500 in May 2025, followed by an 8.8% after-hours jump, was treated as a milestone for the crypto sector. MicroStrategy, by contrast, was left out after reporting a $4.2 billion GAAP net loss in the first quarter of 2025. The article argues that inclusion can trigger mechanical buying from passive funds, but price moves around index changes often reflect a mix of short covering, active positioning, and pre-announcement trading rather than passive flows alone.

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Bitcoin treas

2026-07-04 00:30:14

Why Strive Is Challenging MSCI’s Plan to Exclude Bitcoin Treasury Companies

Strive Asset Management is pushing back against a proposal from index giant MSCI that could exclude companies whose bitcoin holdings exceed 50% of total assets from major equity benchmarks. In a letter to CEO Henry Fernandez, Strive argued that the proposal would create inconsistent outcomes across jurisdictions because bitcoin is reported differently under U.S. GAAP and IFRS. The firm says broad benchmark indexes should remain neutral and that investors who want to avoid digital-asset exposure can already choose optional “ex-digital-asset treasury” index variants, similar to customized index products used in sectors such as energy and tobacco. The debate matters because the proposal could affect not only Strive, which holds more than 7,500 BTC and ranks as the 14th-largest public corporate bitcoin holder, but also much larger players such as Strategy, with 650,000 BTC on its balance sheet. JPMorgan estimates that exclusion from MSCI indexes alone could trigger roughly $2.8 billion in passive outflows from Strategy, with that figure potentially rising to $8.8 billion if other index providers adopt similar rules. Strive argues that many bitcoin-heavy companies are real operating businesses in areas such as AI data centers, structured finance, cloud infrastructure, and mining-related energy and compute services. MSCI is expected to announce its decision on January 15, 2026, ahead of its February index review. The controversy has widened after Michael Saylor argued that Strategy should be viewed as a publicly traded operating company with a $500 million software business and a bitcoin treasury strategy, rather than as a fund, trust, or holding vehicle. At stake is more than index methodology: the outcome may shape how traditional finance classifies bitcoin treasury firms and whether passive investment benchmarks remain neutral as more public companies adopt BTC on their balance sheets.

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MSCI

2026-07-04 00:00:14

Why Strive Is Challenging MSCI’s Plan to Exclude Bitcoin-Heavy Public Companies

Strive Asset Management has publicly opposed a proposal from MSCI that would exclude companies holding Bitcoin worth more than 50% of total assets from major equity benchmarks. In a letter to MSCI CEO Henry Fernandez, Strive argued that the proposal could create inconsistent treatment across global markets because companies report Bitcoin differently under U.S. GAAP and IFRS. The firm said this would undermine index neutrality and effectively impose an investment judgment on benchmarks that are supposed to reflect the market rather than shape it. Strive also urged MSCI to use optional “ex-digital-asset treasury” index variants instead of changing the eligibility rules for broad market benchmarks. According to Strive, similar customized index approaches already exist in sectors such as energy and tobacco, making a broad exclusion unnecessary. The stakes are high for Bitcoin treasury companies and operating businesses with large BTC holdings, including Strategy, which reportedly holds 650,000 BTC. JPMorgan estimates that MSCI exclusion alone could trigger $2.8 billion in passive outflows from Strategy, with the number rising to $8.8 billion if other index providers follow. The debate also touches on broader issues: whether a 50% threshold is workable, how to classify companies that run real businesses while holding large Bitcoin reserves, and whether strict index rules could push innovation away from U.S. public markets. MSCI is expected to announce its decision on January 15, 2026, ahead of its February index review.

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JPX

2026-07-02 03:40:14

7 Reasons JPX Should Reconsider Its Proposed Crypto Asset Exclusion from TOPIX and Move Toward an Asset-Neutral Framework

JPX Market Innovation & Research (JPXI) is consulting on a new rule that would defer companies whose principal asset is cryptoassets from new inclusion in TOPIX and other periodic indices. This article examines seven critical flaws in the proposal: it introduces a balance-sheet test foreign to TOPIX's objective methodology; the definition of "principal asset is cryptoassets" is vague and leaves key administrative questions unanswered; the rule could be easily circumvented through indirect exposure structures (e.g., ETFs, miner stocks); the carve-out for existing constituents creates internal inconsistency; the open-ended "for the time being" deferral lacks a review timetable or sunset clause; global peers such as MSCI and FTSE Russell have not adopted blanket exclusions; and an asset-neutral concentration framework would be more durable and less prone to arbitrage. The public comment period closes May 7, 2026, and the Bitcoin For Corporations coalition letter urges JPXI to withdraw the exclusion. This article provides a comprehensive analysis for issuers, investors, and index users.

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