Standard Chartered: Bitcoin Could Outperform Tesla in Tech Portfolios

A new report from Standard Chartered suggests that Bitcoin (BTC) might be better classified as a high-growth tech asset rather than digital gold, opening the door for increased institutional investment.

Geoff Kendrick, the bank’s head of digital asset research, noted that Bitcoin’s correlation with the Nasdaq has historically been stronger than its link to gold. While BTC has functioned as a hedge during financial turmoil—such as the 2023 regional banking crisis—it more often behaves like a high-risk, high-reward tech stock.

“Bitcoin offers investors a dual purpose: as a hedge against traditional finance risks and as part of a broader tech allocation,” Kendrick said. However, in the short term, its price movements suggest it is more aligned with tech equities than safe-haven assets.

Swapping Tesla for Bitcoin: A New Approach to the ‘Mag 7’

In light of Bitcoin’s tech-like behavior, Standard Chartered proposes modifying the well-known “Magnificent 7” (Mag 7) index—composed of major tech giants Apple, Alphabet, Microsoft, Nvidia, Amazon, Meta, and Tesla. Instead of Tesla, the bank suggests adding Bitcoin to create a “Mag 7B” portfolio.

Backtesting this adjustment, the Mag 7B model has historically outperformed the original Mag 7, delivering 1% higher annual returns while reducing volatility by nearly 2%. This risk-reward improvement makes BTC an attractive option for institutional investors seeking portfolio diversification.

Growing Institutional Interest in Bitcoin

The report highlights that viewing Bitcoin through a tech lens rather than strictly as an alternative asset could encourage more institutional adoption.

“Reframing BTC’s role in investment portfolios could lead to significantly more institutional buying,” Kendrick stated.

Institutional appetite for Bitcoin is already rising. BlackRock, the world’s largest asset manager, has suggested a BTC allocation of up to 2% in traditional portfolios. Additionally, investment firms like 21Shares and Bitwise have launched ETFs that combine Bitcoin with gold, showcasing its versatility.

With Bitcoin increasingly proving its role in modern investment strategies, its presence in institutional portfolios could expand rapidly in the coming years.