Wedbush has initiated coverage of Bitcoin Investment Trust with an Outperform rating and a $40 price target (currently $30.45), but the investment thesis has everything to do with Bitcoin and nothing to do with the rather expensive financial product that’s being offered.
“GBTC is a NASDAQ OTCQX listing of the Bitcoin Investment Trust which holds BTC and serves as a proxy for the price of BTC at a 1/10 ratio. We expect GBTC to trade at a slight premium to BTC as the publicly traded liquidity benefit is only somewhat offset by the 2% management fee,” write Wedbush analysts Gil Luria and Aaron Turner.
You read that correctly, GBTC charges 2% for passively holding an asset that you can easily buy yourself.
GBTC...
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