Mark Cuban Backing New Cryptocurrency Fund Months After Calling Bitcoin A ‘Bubble’
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 $US270 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 $US20 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 $US2,900 a coin, to warn about a coming correction in bitcoin.
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 $US24.7 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.