A hypothetical version of the Mag 7 index created by Standard Chartered, replacing Tesla with Bitcoin, demonstrated superior returns compared to the original. This was reported by The Block, citing the bank’s report.
The Mag 7 includes the so-called tech ‘Magnificent Seven’ — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla.
Jeffrey Kendrick, head of digital asset research at Standard Chartered, excluded Elon Musk’s company from the metric as a smaller capitalisation participant (~$800 million) and replaced it with the leading cryptocurrency (~$1.7 trillion). The expert aimed to assess whether Bitcoin could be considered analogous to tech stocks and a hedge against risks in traditional financial markets.
As a result, over the period from December 2017, the modified Mag 7B outperformed the Mag 7 by approximately 5% in returns. Moreover, the volatility of the index with Bitcoin was on average nearly 2% lower than the original.
“This tells us that Mag 7 portfolios would have benefited over the past seven years from adding BTC and excluding TSLA,” noted Kendrick.
According to him, including Bitcoin in the index this year would have been even more advantageous. Since the launch of spot ETFs in early 2024, trading the leading cryptocurrency has become as seamless and cost-effective as other stocks in the Mag 7.
Following the inauguration of U.S. President Donald Trump in January 2025, Bitcoin’s volatility-adjusted behaviour became more akin to Nvidia’s stock movements. Tesla, on the other hand, trades more along the lines of Ethereum, Kendrick emphasized.
“We believe BTC should be considered as a tool serving multiple functions in investors’ portfolios; this will open the door for even more institutional purchases,” concluded Kendrick.
Regarding Bitcoin’s near-term prospects, the expert noted its growing correlation with the stock market, which is emerging from its worst quarter since mid-2022. Kendrick believes the cryptocurrency is now focused on the $90,000 mark.
After prices held above $87,000, experts anticipate Bitcoin will face significant resistance at the $90,000 level.