Standard Chartered: Bitcoin Could Outperform Tesla in a Tech Portfolio
Bitcoin (BTC) should be seen as more than just “digital gold”—it behaves more like a high-growth tech stock and could serve as a strategic asset in technology-focused portfolios, according to a new report from Standard Chartered.
Led by Geoff Kendrick, the report argues that Bitcoin’s price movements have historically shown a stronger correlation with the Nasdaq than with gold, the traditional safe-haven asset. While BTC has occasionally acted as a hedge during financial crises—such as the 2023 banking sector turmoil—the report suggests that, under normal market conditions, Bitcoin trades in line with tech stocks.
Swapping Tesla for Bitcoin in the ‘Magnificent 7’
Standard Chartered proposes modifying the “Magnificent 7” (Mag 7)—a group of top-performing tech stocks including Apple, Microsoft, Alphabet, Nvidia, Amazon, Meta, and Tesla. By replacing Tesla with Bitcoin, the newly formed “Mag 7B” portfolio delivered stronger risk-adjusted returns and lower volatility over the past seven years.
“Integrating Bitcoin into a technology-focused portfolio enhances performance while reducing risk, making it an appealing option for institutional investors,” Kendrick noted.
Institutional Investors May Take Notice
Viewing Bitcoin as part of the tech sector rather than just an alternative store of value could encourage broader institutional adoption. Kendrick suggested that this perspective could open the door for more large-scale investors to allocate capital to Bitcoin.
Investment giants are already considering Bitcoin’s role in diversified portfolios. BlackRock has recommended allocating up to 2% of traditional stock-bond portfolios to BTC, while firms like 21Shares and Bitwise have launched hybrid ETFs combining Bitcoin with gold.
As Bitcoin’s integration into mainstream finance accelerates, its position within institutional portfolios could become even more significant.
