Bitcoin Outperforms Tesla in Revised Mag 7 Index, Shows 5% Gain

Standard Chartered has recently introduced a modified version of the “Magnificent 7” index, replacing Tesla with Bitcoin. This new index, referred to as “Mag 7B,” includes major tech giants such as Apple, Amazon, Microsoft, Meta, Nvidia, Alphabet, and Bitcoin. The revised index has demonstrated higher returns and lower volatility compared to the original “Magnificent 7” index over the past seven years. The Mag 7B index delivered roughly 1% higher average returns and nearly 2% lower annual volatility, providing better risk-adjusted performance for institutional investors.

According to Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, the decision to substitute Tesla with Bitcoin was based on Bitcoin’s increasing role in financial markets. Kendrick stated that the “Mag 7” portfolios would have benefited over the past seven years from adding Bitcoin and excluding Tesla. The analysis found that the revised “Mag 7B” index has outperformed the traditional Mag 7 by about 5% since December 2017. Additionally, the Bitcoin-included index demonstrated nearly 2% lower volatility on average compared to the original lineup. Kendrick emphasized that these findings suggest Bitcoin is not only a hedge against traditional financial risks but also behaves similarly to high-performing technology stocks.

Kendrick also pointed out that Bitcoin’s correlation with the Nasdaq is stronger than its correlation with gold, reinforcing the argument for its classification alongside tech equities. He noted that if Bitcoin were included in major indices, it would likely attract more institutional buying as it would serve multiple purposes in investor portfolios. The growing institutional adoption of Bitcoin, particularly following the launch of spot Bitcoin ETFs in early 2024, has made trading the cryptocurrency as seamless and cost-effective as dealing in traditional tech stocks.

Kendrick highlighted a notable shift in Bitcoin’s trading behavior. Since the inauguration of U.S. President Donald Trump in January 2025, Bitcoin’s price behavior has mirrored Nvidia’s on a volatility-adjusted basis. In contrast, he noted that Tesla now trades more similarly to Ethereum. Kendrick believes that Bitcoin should be viewed as a multi-functional instrument in investor portfolios, which will open up the opportunity for even more institutional buying. He remains optimistic about Bitcoin’s near-term prospects, citing its increasing correlation with the stock market, which is rebounding from its worst quarter since mid-2022. Kendrick referenced Bitcoin’s next major price target of $90,000.

Bitcoin’s integration into high-profile investment indices and its performance compared to traditional tech stocks further cement its role in institutional portfolios. As more institutional investors recognize Bitcoin’s multi-functional utility, its inclusion in mainstream financial indices could become a reality in the future. The report suggests that Bitcoin's market behavior aligns more closely with tech stocks than with safe-haven assets. Bitcoin has maintained a stronger correlation with the Nasdaq than with gold, challenging its traditional role as a hedge against financial instability. While Bitcoin may still offer some protection during rare instances of financial instability, its price behavior increasingly mirrors that of major technology stocks. Kendrick noted that in the short term, Bitcoin may be better viewed as a tech stock rather than as a hedge against traditional financial issues.

The inclusion of Bitcoin in the Mag 7B index highlights its potential as a multi-functional asset in portfolios, which could drive more institutional adoption. Major asset managers have also shown interest in Bitcoin. BlackRock has suggested a 2% Bitcoin allocation in traditional portfolios, while 21Shares and Bitwise have launched ETFs that pair Bitcoin with gold for diversified exposure. With growing acceptance from the investment community, Bitcoin is increasingly seen as a core component of modern tech investment strategies, rather than just a hedge.