Swapping Tesla for Bitcoin in the “Magnificent 7” index results in higher returns and lower volatility.
Standard Chartered's analysis shows that Bitcoin's inclusion in the index has outperformed the traditional lineup by about 5% since December 2017.
The revised index also exhibited lower volatility on average, suggesting Bitcoin's potential as a hedge against financial risks and its similarity to high-performing tech stocks.
Bitcoin's growing correlation with the stock market and its integration into investment indices further solidify its role in institutional portfolios.