Standard Chartered Drops Tesla for Bitcoin in ‘Mag 7B’ Index – Here’s Why

Standard Chartered has introduced a new twist to the well-known “Magnificent 7” index by replacing Tesla with Bitcoin. This updated version, called Mag 7B, has outperformed the original by delivering higher returns with lower volatility.

This raises a big question: Does Bitcoin deserve a place among the world’s top tech giants? It certainly does make a strong case. Let’s dive in.

Bitcoin’s Strength Over Tesla

The experiment found that Bitcoin, with a market cap of $1.7 trillion – more than twice Tesla’s – brings a stronger balance of risk and reward. Geoffrey Kendrick, head of digital assets research at Standard Chartered, pointed out that Bitcoin moves more like the Nasdaq than gold, suggesting it fits well in a tech-heavy portfolio.

Mag 7B Outperforms the Original

Since December 2017, Mag 7B has outpaced the original index by 5%, delivering stronger yearly returns in five of the past seven years. It has also been nearly 2% less volatile on average, making it a steadier option than Tesla.

Bitcoin’s rising market cap and growing acceptance by institutional investors make it a strong candidate for mainstream portfolios. It is increasingly seen as both a technology-driven asset and a hedge against traditional finance, standing alongside giants like Apple, Microsoft, and Nvidia.

Spot Bitcoin ETFs Make Investing Easier

The introduction of spot Bitcoin ETFs in early 2024 has made trading Bitcoin as simple as buying major stocks. Kendrick believes Bitcoin now serves two roles—acting as a hedge against financial uncertainty while also being a key asset in tech-focused investments.

Is Bitcoin Set for More Gains?

Current market trends look promising for Bitcoin. With the Nasdaq facing challenges, some investors may shift their money into Bitcoin. A key US tariff decision on April 2 could also impact the market, and some experts believe Bitcoin could rise toward $90,000.

Following the news, Bitcoin climbed more than 3.5% on Monday, pushing the total crypto market cap to $2.9 trillion. Other major cryptocurrencies also gained:

• Ethereum rose 4%
• XRP increased by 3.2%
• Solana jumped 6.5%
• Dogecoin climbed 3%

As Bitcoin continues gaining traction with institutional investors, its position in global finance is becoming more significant. The real question now is how long before more institutions follow Standard Chartered’s lead.

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