TechFlow news, March 25 — According to The Block, Standard Chartered has introduced a hypothetical "Mag 7B" index, replacing Tesla with Bitcoin (BTC) in the so-called "Magnificent Seven" tech stock portfolio. The bank found that this new combination delivers higher returns and lower volatility.
Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, pointed out in the report that Bitcoin's correlation with Nasdaq is "almost always" higher than its correlation with gold in the short term, supporting the case for viewing Bitcoin as part of the technology equity sector. He stated, "If Bitcoin were included in a tech stock portfolio, it would attract more institutional investors, as Bitcoin can serve multiple roles within an investment portfolio."
The original Mag 7 index consists of Apple, Microsoft, Nvidia, Amazon, Alphabet (Google's parent company), Meta, and Tesla. Standard Chartered’s Mag 7B index replaces Tesla—the smallest by market capitalization among the seven—with Bitcoin, to test whether Bitcoin can be regarded as a tech-equivalent asset while also serving as a hedge against traditional finance (TradFi) risks.
