Bitcoin, GBTC Backers Boycott JPMorgan Over MSCI Index Proposal
Bitcoin community members and Grayscale Bitcoin Trust (GBTC) investors have ramped up calls to boycott JPMorgan after MSCI proposed excluding companies with over 50% digital asset exposure from its flagship indexes. In a recent research note, JPMorgan warned that removing GBTC could trigger up to $2.8 billion in outflows. MicroStrategy’s Michael Saylor insisted that index classification cannot redefine GBTC’s value proposition. Real estate investor and Bitcoin advocate Grant Cardone revealed he withdrew $20 million from JPMorgan and filed a lawsuit over alleged credit card violations. Meanwhile, broadcaster Max Keiser urged supporters to “bring down JPMorgan” by buying GBTC and Bitcoin. Analysts caution that barring crypto-heavy funds from indexes may force passive asset managers to liquidate positions, potentially amplifying downward pressure on crypto markets.
Bearish
The boycott movement and potential exclusion of GBTC from MSCI indexes cast a shadow over institutional demand. JPMorgan’s warning of $2.8 billion in forced outflows echoes past episodes when index rebalancing led to sharp sell-offs—such as Large Cap fund adjustments in 2018 that drove Bitcoin below $3,000. Short-term, traders may see increased volatility as passive funds liquidate affected positions, pressuring BTC and GBTC prices. Long-term, regulatory tightening and reduced index inclusion could dampen institutional adoption, slowing capital inflows. Combined with heightened negative sentiment toward major financial intermediaries, the news likely sustains bearish momentum until clarity on index rules and fund eligibility emerges.