Bitcoin as a Tech Asset? StanChart Says It Could Outperform Tesla in ‘Mag 7’ Portfolio
Bitcoin (BTC) may be better understood as a tech stock rather than digital gold, a shift in perception that could drive more institutional investment, according to Standard Chartered’s latest research.
Geoff Kendrick, head of digital asset research at StanChart, argues that Bitcoin’s price movements have historically aligned more closely with the Nasdaq than with gold, the traditional safe-haven asset. While BTC has occasionally served as a hedge during financial turmoil—such as the 2023 regional banking crisis or concerns over U.S. debt—the reality is that these situations are rare. As a result, Bitcoin behaves more like a high-growth tech stock than a defensive asset.
“Investors can view BTC as both a hedge against financial instability and as part of a tech-focused portfolio,” Kendrick explained. However, in the near term, Bitcoin’s price dynamics resemble tech stocks more than a financial hedge, he added.
Swapping Tesla for Bitcoin? A ‘Mag 7B’ Portfolio Suggestion
Building on this idea, Standard Chartered’s report suggests modifying the well-known “Magnificent 7” (Mag 7) tech stock index—comprising Apple, Alphabet, Microsoft, Nvidia, Amazon, Meta, and Tesla—by replacing Tesla (TSLA) with Bitcoin. The revised group, dubbed “Mag 7B,” consistently delivered stronger risk-adjusted returns than the original lineup over the past seven years.
According to the report, Mag 7B outperformed the Mag 7 by about 1% annually while maintaining nearly 2% lower volatility—an appealing feature for institutional investors seeking high returns with manageable risk.
Growing Institutional Interest in Bitcoin
Kendrick believes that broadening Bitcoin’s role in investment portfolios could encourage even more institutional adoption. “BTC should be seen as serving multiple purposes in investor portfolios, opening the door for further institutional buying,” he noted.
Major asset managers have already begun integrating Bitcoin into traditional portfolios for diversification. BlackRock, the world’s largest asset manager, has suggested an allocation of up to 2% BTC in standard stock and bond portfolios. Meanwhile, firms like 21Shares and Bitwise have launched exchange-traded funds (ETFs) combining Bitcoin with gold, reinforcing BTC’s appeal as both a tech asset and a hedge.
