Needham Co. LLC, a New York City-based investment firm, has begun covering the Bitcoin Investment Trust (BIT), giving it a “buy” rating and a $62.00 price target (PT). Needham estimates the present per-bitcoin value at $655.
BIT is sponsored by Grayscale Investments, which is owned by Digital Currency Group, which invests in the blockchain and digital currency ecosystem. BIT is a private, open-ended trust that invests only in bitcoin. Hence, the value is based primarily on the bitcoin price.
Needham, according to a 39-page report explaining its “buy” at $62 PT, believes the price of bitcoin stands to benefit substantially from rising demand for its two main use cases as an alternative payments channel and as a “digital gold.” The growing demand is driven by market trends such as expanding ecommerce, globalization, and by the pervasiveness of enabling technology like mobile phones.
The report says bitcoin is disrupting trillion-dollar markets in value exchange and payments.
How BIT Shares Attain Value
BIT shares are benefiting from the increase in the value in