Crypto vs. Stocks: Is Ethereum the Nvidia of the Digital Asset World?

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Nvidia and Tesla outpace Bitcoin and Ethereum in 5-year growth.
Ethereum’s growth aligns closer to Nvidia’s than Bitcoin’s.
Spot Ethereum ETF approval will mark a significant market shift.

Five years since the rise of the “Magnificent Seven” tech stocks, a comparison with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) offers a fascinating glimpse into market dynamics. Consolidation has significantly benefited companies like Apple, Microsoft, Alphabet, Meta, Amazon, Nvidia, and Tesla.

Bank of America analyst Michael Hartnett coined the term “Magnificent Seven” in April 2023. At that time, these stocks accounted for 88% of year-to-date shareholder returns. Despite Tesla’s recent decline, the Magnificent Seven continues to outperform the broader market.

The Roundhill Magnificent Seven ETF (MAGS) has returned 35.8% year-to-date, compared to the S&P 500’s (SPX) 15.1% return over the same period. This outsized performance means these stocks now represent nearly 30% of the S&P 500, highlighting the concentrated nature of the U.S. tech stock market.

In contrast, blockchain networks like Bitcoin and Ethereum offer a different growth story. Cryptocu…

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