Home Fintech Mark Cuban is backing a new cryptocurrency fund months after calling bitcoin...

Mark Cuban is backing a new cryptocurrency fund months after calling bitcoin a ‘bubble’

31
SHARE

Mark Cuban is singing a different tune when it comes to cryptocurrencies.

The tech billionaire and “Shark Tank” star is an early backer of a new cryptocurrency fund, according to CoinDesk, which reports on blockchain and cryptocurrency news.

The fund, 1confirmation, launched Tuesday, plans to invest exclusively in cryptocurrency assets, according to a filing with the Securities and Exchange Commission. Its founder, Nick Tomaino, a principal at the $270 million Palo Alto-based investor Runa Capital, is looking to raise $20 million.

“I think Nick is one of the sharpest minds in the space, and I’m a big believer that there will be transformational apps built on blockchain,” Cuban told CoinDesk.

Cuban’s financial interest in the digital-currency world is an about-face for the billionaire, who two months ago called it a “bubble.” In early June, soon after bitcoin hit what was then a near record high of $2,900 a coin, Cuban warned of a coming correction.

Cuban’s change of heart represents a pivot across Wall Street. Financial firms and institutional investors are waking up to the profit potential in cryptocurrencies as bitcoin and ether, its rival powered by the Ethereum blockchain, reach new heights – they’re up more than 350% and 2,000%, respectively, since the beginning of the year.

For instance, VanEck, the New York-based money manager with $24.7 billion in assets, is seeking to launch a bitcoin exchange-traded fund, according to an August 11 SEC preliminary filing. Additionally, Goldman Sachs is telling clients that cryptocurrencies are worth their attention.

ICOs, a fundraising method powered by blockchain, have raised over $1.8 billion since the beginning of the year, according to Autonomous Next, a fintech-analytics firm.

According to CoinDesk, 1confirmation “will make initial investments in the $100,000 to $500,000 range” in “legal vehicles designed to help investors pre-purchase tokens or equity prior to an ICO.”

Source: Business Insider