Index heavyweight provider MSCI announced that it will add Microstrategy to the MSCI ACWI Index, effective on May 31. Bloomberg ETF analyst Eric Balchunas stated that ACWI is highly favored by institutions, making the impact of this addition significant.
MSCI ACWI Index
The MSCI ACWI Index is MSCI’s flagship global equity index designed to track the performance of large and mid-cap stocks worldwide. The index covers 23 developed markets and 24 emerging markets, comprising 2,840 constituents across 11 sectors and representing approximately 85% of the investable equity opportunity value in each market.
Since 2009, the performance of the MSCI ACWI Index has been similar to the MSCI World Index (which includes only developed countries), but has outperformed the MSCI Emerging Markets Index. The top ten holdings of the MSCI ACWI Index include Microsoft, Apple, Nvidia, and Taiwan’s TSMC.
Previously, ChainNews also reported that with the continuous increase in Microstrategy’s market value, discussions have begun about the day when Microstrategy will be included in the S&P 500 Index. Once included in the S&P 500 Index, Bitcoin will start to “automatically permeate all portfolios,” including traditional 401(k) plans, retirement funds, and the hands of passive investors.
(Daily Bit: If MicroStrategy is included in the S&P 500 Index, will millions of people passively buy Bitcoin?)
As more and more people adopt passive index investing (like the recent trend in Taiwan’s 00940), if a stock is included in an important index, it will automatically permeate many portfolios and become an important reference target for institutional investors. Although Bitcoin prices did not change significantly yesterday, the news of Microstrategy’s inclusion inspired a 4.15% surge in its stock price. It has risen 87% year-to-date, far exceeding Bitcoin’s 45%.
MSCI
MSCI ACWI Index
Microstrategy