Bitcoin (BTC) has long been seen as a hedge against financial instability, but according to a new analysis by Standard Chartered’s head of digital assets research, Geoffrey Kendrick, it may now also be considered a tech stock. Kendrick’s research proposes reconfiguring the famous “Magnificent 7” tech stock index to include Bitcoin, a move that he believes could enhance the index’s returns.
In a research report shared with CryptoSlate, Kendrick suggests replacing Tesla with Bitcoin in the index, creating a revised index dubbed “Mag 7B.” This new index consistently outperformed the original Mag 7 in terms of return-to-volatility from 2020 through 2024.
The report states, “We find that our index, ‘Mag 7B,’ has both higher returns and lower volatility than Mag 7. This suggests that investors can view BTC as both a hedge against traditional finance (TradFi) and as part of their tech allocation.”
Kendrick emphasizes that as Bitcoin gains traction in global portfolios, the case for treating it as a mainstream risk asset will only grow stronger. Institutional flows into Bitcoin are becoming more entrenched, especially with the approval of spot Bitcoin ETFs in the US.
While Kendrick sees Bitcoin as a medium-term hedge against TradFi risks, he notes that over shorter time horizons, Bitcoin is highly correlated with the Nasdaq. He anticipates that a rebound in the broader markets this week, fueled by positive US tariff news and tech optimism, could benefit Bitcoin disproportionately.
Looking ahead, Kendrick expects a positive week for Bitcoin and the broader crypto market, with a focus on reaching $90k. However, he believes that Bitcoin will need a significant catalyst for a sustained rally to new highs.
Overall, Kendrick’s analysis underscores Bitcoin’s dual nature as both a hedge and a high-beta tech asset. This positioning could solidify Bitcoin as a long-term fixture in global investment strategies.
As Bitcoin continues to evolve and gain recognition as a tech stock, investors may need to reconsider their portfolios to include this digital asset alongside traditional stocks and assets. With its potential to outperform traditional tech stocks and serve as a hedge against financial instability, Bitcoin is increasingly becoming a key player in the investment landscape.