MSCI Warns of ‘Creeping’ Crypto Exposure in Equity Markets

Fifty-two companies with crypto exposure combine for a total market capitalization of $7.1 trillion.

Oct 15, 2021 at 8:53 a.m. UTC
Updated Oct 15, 2021 at 2:30 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

MSCI warned of “creeping” exposure to cryptocurrency in equity markets by 52 companies with some degree of crypto exposure.

  • The companies covered by the index provider’s research have a combined market capitalization of $7.1 trillion, Bloomberg reported Thursday.
  • The roster includes firms directly involving in the buying and selling of crypto, such as exchange Coinbase, and firms with an allocation of cryptocurrency on their balance sheets, such as business-intelligence software firm MicroStrategy.
  • While those two are among the most obvious examples of crypto exposure, MSCI highlighted in a blog post Wednesday that equity investors may be faced with “creeping” cryptocurrency exposure.
  • “This can occur when newly listed cryptocurrency companies get added to the indexes that guide their investments, or when companies in which they are already invested, directly or through indexes, announce strategies that include bitcoin or other cryptocurrencies.”
  • In particular, the governance of cryptocurrencies may present new challenges to companies and investors, given their decentralized nature.
  • “At a minimum, investors may benefit from understanding how managers and directors of cryptocurrency-exposed companies are monitoring developments in these informal governance frameworks. For companies with more significant exposure, investor interests may be better served by being more actively involved,” MSCI said.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

Trending

1
CoinDesk - Unknown
Crypto Whales Ditched Tether for USDC After Stablecoin Panic

The UST failure prompted large investors on the Ethereum blockchain to leave USDT for the perceived safety of its biggest competitor.

The UST failure prompted large investors on the Ethereum blockchain to leave USDT for the perceived safety of its biggest competitor.

CoinDesk - Unknown
2
CoinDesk - Unknown
FTX’s Bankman-Fried Pitches CFTC on Directly Clearing Customers’ Crypto Swaps

The crypto exchange’s founder and CEO made his case at a Washington D.C. roundtable, while mainstream derivatives firms painted his ideas as dangerous.

The crypto exchange’s founder and CEO made his case at a Washington D.C. roundtable, while mainstream derivatives firms painted his ideas as dangerous.

CoinDesk - Unknown
3
CoinDesk - Unknown
Terra lanzaría su snapshot esta semana: cómo serán distribuidos los 'nuevos' LUNA

El suministro de tokens en la nueva blockchain será de poco más de $116 millones, dijeron los desarrolladores.

El suministro de tokens en la nueva blockchain será de poco más de $116 millones, dijeron los desarrolladores.

CoinDesk - Unknown
4
CoinDesk - Unknown
Binance to Advise on Crypto Strategy as Kazakhstan Looks to Boost Industry

The country known as a bitcoin mining hub is trying to attract more crypto firms and broaden the industry.

The country known as a bitcoin mining hub is trying to attract more crypto firms and broaden the industry.

CoinDesk - Unknown