“Bitcoin Could Be Viewed As Serving Multiple Purposes in a Tech Portfolio, Paving The Way for More Institutional Buying, The Bank’s Digital Asset Research Head Said.”, – WRITE: www.coindesk.com
Led by Geoff Kendrick, The Stanchart Team Said Bitcoin’s Correlation with The Nasdaq Has “Almost Always” Been Stronger than with Gold, The Old-School Safe Haven Asset. While Btc May have a role as a place to Hide in Instance of Financial Instability Like The 2023 Regional Banking Crisis or What Might Be The Unesustainable Thorajectory A Need for Such Hedges, Thus Its Increasing Behavior As More Like A Traditional Tech Stock.
“Investors canw btc as both a Hedge against traditional financial and as part of their tech allocation,” Said Kendrick. But, at least “in the short term, BTC May Be Better Viewed As a Tech Stock Than As a Hedge Against Tradfi Issues,” He Added.
Playing with the Idea of Bitcoin As Part of a Tech Portfolio, The Report Proped A Remodel of the Index of the So-Called Magnificent 7 (Mag 7) Stocks-The Mega-Cap TECHA NAMES NETCH NET NAMES NETS Returns of Late, Apple, Alphabet, Microsoft, Nvidia, Amazon, Meta and Tesla (Tsla). This New “Mag 7b” would swap out tesla for bitcoin.
The Result? The Mag7B Produced Consistently Higher Risk-Adjusted Returns Than the Original Group Over The Past Seven Years, Reinforcing Btc’s Role in a Tech-Focused Portfolio, Said Kic. The Mag7b OutperForrated the Mag7 on AVERAGE BY AROUND 1% with Nearly 2% Lower Volatility on and Annual Basis, A Key Benefit to Institutional Investors and Large Asset Allocaters, Ga.
Mag7B Return/Valatility Vs. Mag7 (Standard Charter)
“BTC Should Be Seen As Serving Multiple Purposes in Invistor Portfolios. This Wuld Open Up The Possibility of Even More Institutional Buying,” Kendrick Noted.
Asset Managers Have Been Advocating for Including Bitcoin in InvESTMENT PORTFOLIOS FOR DIVERSIFICATION PURPOSES. For example, Blackrock, The World’s Largest Asset Manager, Recommended Considering an Up to 2% BTC Allocation in Traditional Stock and Bond Portfolios. Meanwhile, Asset Managers Like 21shares and Bitwise Have Launted Exchange-Traded Funds (ETFS) Combining Gold and Bitcoin As Complementary Assets.
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