mark cubanMark
Cuban speaking 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 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.

The billionaire said in a tweet last week that he was looking to
jump on the bitcoin bandwagon:

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 in bitcoin:

Cuban then turned his focus to cryptocurrencies as a whole:

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.

In a recent note to portfolio managers, the Goldman analyst

Robert 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.”

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.”

Get the latest Bitcoin price here.

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