Mark Cuban backs new cryptocurrency fund

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mark cuban
Mark
Cuban speaks at the 2015 Wall Street Journal Digital Live
conference.

Mike
Blake/Reuters


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 reporting by CoinDesk
, the blockchain and
cryptocurrency news provider.

The so-called 1confirmation fund, launched Tuesday and founded by
Nick Tomaino, a principal at Runa Capital, a $270 million Palo
Alto-based investor, plans to invest “exclusively” in
cryptocurrency assets, according to a filing with
the Securities and Exchange Commission
. Tomaino 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 backing of Tomaino’s fund follows a tweet by the
billionaire last week saying he was jumping on the bitcoin
bandwagon. 

Cuban’s new found financial interest in the digital
currency world is an about-face for the billionaire, who just
two months called the cryptocurrency universe a
bubble.

Cuban took to
 Twitter in
early June, soon after bitcoin hit what was then a near record
high of $2,900 a coin, to warn about a coming correction in
bitcoin. Here’s Cuban:

Cuban then turned his focus to the cryptocurrency space as a
whole:

Cuban’s change of heart represents a pivot happening
across Wall Street. Financial firms and institutional
investors are waking up to the profit potential in
cryptocurrencies as bitcoin and Ethereum reach new heights.The
two blockchain-based digital currencies are up over 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 ETF,
according to an August 11 preliminary filing with the

Securities and Exchange Commission
.
Additionally, 
Goldman Sachs is now telling clients
that the cryptocurrency space is worth paying attention to.

In a recent note to portfolio managers, Goldman
analyst D.
Boroujerdi and his team
wrote:

With the total value nearly $120 billion, it’s getting harder for
institutional investors to ignore cryptocurrencies. Whether or
not you believe in the merit of investing in cryptocurrencies
(you know who you are) real dollars are at work here and warrant
watching especially in light of the growing world of initial coin
offerings (ICOs) and fundraising that now exceeds Internet Angel
and Seed investing.

Initial coin offering, a fundraising method powered by Ethereum
blockchain, has raised over $1.8 billion since the beginning of
the year, according to Autonomous NEXT, a fintech analytics
firm. 

According to CoinDesk, 1coinfirmation “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.”



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