StanChart Report Suggests Bitcoin Outperforms Tesla in Tech Portfolio
A report by Standard Chartered suggests investors view bitcoin (BTC) as a tech stock rather than just a digital gold. Key points include:
- BTC has a stronger correlation with the Nasdaq than with gold.
- In times of financial instability, BTC serves as a hedge but increasingly behaves like a tech stock.
- Short-term, BTC is better viewed as part of a tech allocation.
- A proposed "Mag 7B" index replaces Tesla with BTC, showing higher risk-adjusted returns and lower volatility than the original Magnificent 7.
- Institutional interest in BTC may increase as it serves multiple portfolio purposes.
- Asset managers recommend BTC for diversification, with BlackRock suggesting a 2% allocation in traditional portfolios.
- ETFs combining gold and BTC are being launched by firms like 21Shares and Bitwise.
