Mag 7 Portfolio Could Perform Better with Bitcoin Instead of Tesla, Says StanChart

Bitcoin as a High-Growth Tech Asset? StanChart Proposes a Shift in Investment Strategy

A new report from Standard Chartered challenges the traditional view of Bitcoin (BTC) as digital gold, instead positioning it as a high-growth tech asset that could enhance institutional portfolios.

According to Geoff Kendrick, head of digital asset research at StanChart, Bitcoin has exhibited a stronger correlation with the Nasdaq than with gold for most of its history. While BTC has occasionally acted as a hedge—such as during the 2023 regional banking crisis or amid concerns over U.S. debt—the report argues that its price movements align more closely with high-growth technology stocks.

“Institutional investors can approach BTC as both a hedge against financial uncertainty and as part of a broader technology allocation,” Kendrick explained. However, he noted that, in the short term, Bitcoin is behaving more like a tech stock than a defensive asset.

Replacing Tesla with Bitcoin? A ‘Mag 7B’ Portfolio Model

Building on this perspective, Standard Chartered suggests modifying the well-known “Magnificent 7” (Mag 7) stock index, which includes Apple, Alphabet, Microsoft, Nvidia, Amazon, Meta, and Tesla. The bank proposes swapping out Tesla (TSLA) for Bitcoin to form a new “Mag 7B” portfolio.

Historically, this adjustment would have led to better performance. Over the past seven years, Mag 7B delivered an average of 1% higher annual returns compared to the original Mag 7 while also reducing portfolio volatility by nearly 2%. This makes Bitcoin an attractive alternative for institutional investors seeking both growth and risk management.

Bitcoin’s Expanding Role in Institutional Portfolios

The report suggests that redefining Bitcoin’s role could unlock greater institutional adoption. “BTC is uniquely positioned to serve multiple functions within investment portfolios, which could drive more institutional capital into the space,” Kendrick said.

Major asset managers are already recognizing Bitcoin’s potential. BlackRock, for example, has recommended a BTC allocation of up to 2% in traditional investment portfolios. Meanwhile, firms like 21Shares and Bitwise have introduced ETFs that combine Bitcoin and gold, offering a hybrid approach to risk management and growth.

With Bitcoin increasingly viewed as a core asset in tech-driven portfolios, its integration into institutional strategies may continue to accelerate.