Bitcoin's Rise as a Tech Investment

Bitcoin is increasingly being viewed as a top-tier tech investment, according to Standard Chartered. Geoffrey Kendrick, head of digital assets research, suggests that Bitcoin behaves more like a tech stock than a safe-haven asset, citing its strong correlation with the Nasdaq. To test this, the bank created a "Mag 7B" index, replacing Tesla with Bitcoin in the "Magnificent 7" group of tech giants. This index has delivered higher returns and lower volatility than the original.

Bitcoin would rank sixth by market cap in this group, surpassing Tesla but trailing Apple and Microsoft. Since December 2017, the Mag 7B index has outperformed the original by 5%, with a better risk-return profile. Kendrick notes that including Bitcoin and removing Tesla has enhanced the index's performance.

The launch of spot ETFs has reduced Bitcoin's transaction costs to levels similar to other Mag 7 stocks, potentially accelerating institutional adoption. Bitcoin could serve multiple roles in portfolios, acting as both a hedge against traditional finance and a growth allocation. Its recent performance has mirrored Nvidia in terms of volatility-adjusted returns, while Tesla has moved more like Ethereum. Kendrick believes this dual role could attract fresh capital inflows, especially as Bitcoin becomes more institutionalized.