Circle stock drops after Russell index removal

Circle was removed from five major Russell Growth Indexes, causing a 17% stock drop and $3.6B loss in value. Index funds must sell shares, reducing liquidity and visibility.

Circle Internet Group, the issuer of the USDC stablecoin, has been removed from five major Russell Growth Indexes, including the Russell 1000 Growth, Russell 3000 Growth, and Russell Midcap Growth, following FTSE Russell's 2026 reconstitution. This removal, effective after the US market closed on June 26, led to a sharp 17% drop in Circle's stock price, wiping out approximately $3.6 billion in market value. As a result, index-tracking funds are now required to sell Circle shares, reducing passive ownership and liquidity. This move could also diminish Circle's visibility among institutional investors, potentially impacting future capital flows and trading activity. FTSE Russell’s decision was based on its periodic review of market capitalization, trading volume, and growth characteristics, rather than Circle’s financial health or business fundamentals. The removal comes amid rising competition in the stablecoin sector, including the launch of OpenUSD, backed by 140 companies. Circle’s exclusion from these widely tracked benchmarks marks a significant shift for a company that was one of 2025’s most prominent IPOs and a key player in the crypto-to-Wall Street narrative.