tl;dr
Standard Chartered's head of digital assets research, Geoffrey Kendrick, suggests that Bitcoin is evolving beyond a hedge against financial instability to be considered a tech stock. Kendrick proposes including Bitcoin in the "Magnificent 7" tech stock index, arguing that it would enhance the index'...
Standard Chartered analysis suggests that Bitcoin is evolving into a tech stock and a hedge against traditional finance, potentially attracting increased institutional investment. Their proposed revision of the tech stock index to include Bitcoin indicates higher returns and lower volatility, positioning Bitcoin as a dual-purpose asset in investment portfolios. It's expected that Bitcoin's role in global portfolios will continue to strengthen, with more entrenched institutional flows and fresh capital inflows due to multiple use cases.
While Bitcoin is seen as a medium-term hedge against traditional finance risks, it trades similarly to the Nasdaq over shorter time horizons, potentially responding positively to broader market trends. Anticipated relief from US tariff news and broader tech optimism could amplify demand for Bitcoin, potentially reaching $90k, although a sustained rally to new highs may require a larger catalyst.
Standard Chartered's head of digital assets research, Geoffrey Kendrick, suggests that Bitcoin is evolving beyond a hedge against financial instability to be considered a tech stock. Kendrick proposes including Bitcoin in the "Magnificent 7" tech stock index, arguing that it would enhance the index's returns. His analysis indicates that Bitcoin can serve as both a hedge against traditional finance risks and as part of a tech allocation. Kendrick also notes that institutional flows into Bitcoin are becoming more entrenched, particularly following the approval of spot Bitcoin ETFs in the US. He anticipates a potential rebound in the market, which could benefit Bitcoin, given its increasing alignment with high-growth tech assets. However, Kendrick believes that Bitcoin needs a bigger catalyst for a sustained rally to new highs.
Bitcoin (BTC) may be evolving into more than just a hedge against financial instability — it could now be considered a bona fide tech stock, according to a new analysis by Standard Chartered head of digital assets research, Geoffrey Kendrick. In a research report, Kendrick proposed reconfiguring the famed “Magnificent 7” tech stock index to include Bitcoin, arguing that this would enhance the index’s returns. To test this thesis, Kendrick’s team created a revised index by removing Tesla and replacing it with Bitcoin, which consistently outperformed the original index from 2020 through 2024, suggesting that investors can view BTC as both a hedge against traditional finance and as part of their tech allocation. Kendrick also emphasized that as Bitcoin continues to gain a role in global portfolios, the case for treating it as a mainstream risk asset will only strengthen, with institutional flows into Bitcoin becoming more entrenched, particularly following the approval of spot Bitcoin ETFs in the US. Furthermore, Kendrick expects markets to respond positively to a “less bad” US tariff announcement, potentially benefiting Bitcoin disproportionately due to its increasing alignment with high-growth tech assets. However, Kendrick continues to believe that Bitcoin needs a bigger catalyst for a more sustained rally to new highs, signaling a growing recognition of Bitcoin’s hybrid nature as both a hedge and a high-beta tech asset, positioning it as a potential long-term fixture in global investment strategies.