MSCI, a major index provider with over $18 trillion in assets following its benchmarks, is considering excluding digital asset treasuries (DATs) from its indexes. This decision has caused a stir in the crypto community, with concerns raised about the validity of DATs meeting investor protection benchmarks. The rise of DATs, from just 4 in 2020 to 142 by October 2025, has led to increased volatility and risk, resulting in a recent sell-off that halved the combined market cap of DATs. Companies like Strategy and BitMine have fared better due to their structured vehicles, while others have been forced to sell off assets to fund share buybacks.

As MSCI deliberates on the inclusion of DATs in its indexes, concerns about risk, governance, and transparency are at the forefront. While some DATs may survive market downturns, many are viewed as high-risk vehicles that lack proper governance. Excluding them from major investment indexes is seen as a cautionary move by MSCI to protect investors from potential losses. The evolving integration of crypto into traditional finance highlights the need for stringent standards to differentiate legitimate digital asset treasuries from risky ventures.

Read more at Yahoo Finance: MSCI Isn’t Wrong to Be Cautious on DATs