Standard Chartered has introduced a revised tech index, named “Mag 7B,” which substitutes Tesla with bitcoin, claiming it offers better returns and reduced volatility compared to the original index. This modification suggests that bitcoin may enhance traditional technology-focused investment approaches.
Geoffrey Kendrick, leading digital assets research at the bank, notes bitcoin often correlates more closely with the Nasdaq than with gold, positioning it as a tech asset rather than a commodity in the short term. This perception indicates a potential shift toward including bitcoin in diversified investment portfolios.
Bitcoin Market Capitalisation Growth
Currently, bitcoin’s market capitalisation exceeds $1.7 trillion, more than double that of Tesla. Its increasing acceptance among institutions may drive more investments as it takes on various roles in global financial strategies, supporting its integration with major technology companies like Apple, Microsoft, and Nvidia.
Kendrick’s analysis highlights a changing perception of bitcoin, framing it within the world of advanced technology stocks rather than traditional commodities. This assessment is not without reason. Over the years, bitcoin’s price movements have mirrored those of high-growth tech firms rather than assets like gold, which historically serve as hedges in times of market instability. Given this correlation with Nasdaq-listed giants, investors evaluating portfolio adjustments may start weighing bitcoin alongside well-established technology shares.
The restructuring of the Standard Chartered index underscores a broader trend among institutions that are restructuring their approach to digital assets. By swapping Tesla for bitcoin, the bank signals confidence in the cryptocurrency’s ability to match or even exceed the performance of certain technology stocks when considering both return potential and price stability. With institutional adoption still in its early stages, this development places further attention on how major financial entities assess bitcoin’s role within diversified holdings.
Looking at market capitalisation, bitcoin’s standing is no minor detail. Doubling Tesla in size gives it a level of market presence that warrants careful consideration by traders tracking momentum in the tech world. While Tesla’s influence remains extensive, recent market movements suggest that bitcoin has cemented itself among the upper tier of financial assets. The sheer volume of trades and institutional involvement increasingly position it as a core instrument in tech-focused portfolios.
Bitcoin Volatility And Market Maturity
Volatility, though once a defining characteristic of bitcoin, has been moderating compared to its early years. While sudden price swings still occur, long-term price behaviour suggests a maturing market. The comparison with Tesla is relevant here as well—while both assets have experienced rapid appreciation in value, the electric vehicle maker has faced extended periods of turbulence linked to competition, supply chain issues, and macroeconomic pressures. Bitcoin, on the other hand, seems to be stabilising as institutional support grows.
If such trends persist, traders will need to adjust their assumptions regarding risk and reward balances when considering bitcoin alongside traditional tech stocks. The mindset that once treated cryptocurrency as a fringe and highly unpredictable asset seems to be fading in institutional circles. As banks, hedge funds, and asset managers integrate bitcoin into their models, informed investors should consider how this shift in classification might affect price behaviour over the coming weeks.
None of this suggests that bitcoin will automatically replace technology stocks in every portfolio. Instead, it introduces new considerations for those evaluating trade allocations. As the asset class gains recognition among financial institutions, the steps taken by entities like Standard Chartered may serve as reference points for others assessing similar shifts in their methodologies. Whether the traditional divide between digital assets and technology companies continues to blur remains to be seen, but early indications suggest a growing willingness to see bitcoin as part of that conversation.
