MSCI's DAT Index Proposal Explains Crypto Market's Struggles After October 10 Crash

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According to Coindesk, the crypto market's struggles to recover after the October 10 crash may be linked to a quiet proposal by MSCI, the world’s second-largest index provider. On the same day of the crash, MSCI published a consultation suggesting that Digital Asset Treasury (DAT) companies, such as Michael Saylor’s MicroStrategy, be reclassified as fund-like vehicles rather than operating companies. If implemented, this could exclude DATs from major equity indexes, triggering billions in forced passive outflows and weakening a key structural buyer of digital assets. Analysts estimate that removing a flagship DAT from MSCI indexes could result in up to $8.8 billion in outflows if other index providers follow suit. The market has since struggled to bounce, with macroeconomic headwinds, exhausted buyers, and DAT uncertainty combining to keep pressure on prices. The final decision on the proposal is expected on January 15, 2026, with potential implications for crypto capital flows and market structure.

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