BlackRock Warns: According to asset management behemoth BlackRock, investors in the iShares spot Bitcoin and Ether ETFs have been the target of a recent uptick in crypto frauds. The firm recently warned its customers to avoid interacting with social media imposters posing as BlackRock officials in an X post.
The warning emphasizes that investors should not engage in social media conversations with imposters pretending to be from BlackRock. According to the business, “there has been a spike in investment-related scams,” which involve tricking consumers into visiting websites that promote cryptocurrency investments or using messaging apps like WhatsApp or Telegram.
Scams Targeting Bitcoin ETF Investors Increase
Scams targeting investors are on the rise, and BlackRock’s statement exemplifies this trend by pointing victims to fake cryptocurrency investing websites or messaging apps like WhatsApp or Telegram. It is worrisome that frauds aimed at Bitcoin ETF investors have been rising. Scammers are using social media to fool ETF investors into thinking they are dealing with BlackRock.
It is important to note that BlackRock will never approach a user through social media to propose investment opportunities or request payment. “If you suspect fraudulent activity, please do not proceed and stay vigilant.”
Scams involving investments have recently increased in frequency, with some of these schemes leading victims to websites or social media platforms that promote cryptocurrency investments, including WhatsApp or Telegram. Be wary of anybody claiming to be associated with our brand on any social media platform or website. With $19.7 billion raised since its introduction on January 11, BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed all other U.S.-approved spot Bitcoin ETF providers in total deposits.
The fund’s quick expansion highlights its prominence in the market. On July 25, during the Bitcoin 2024 conference in Nashville, Tennessee, Robert Mitchnick, head of digital assets at BlackRock, addressed the matter. He observed that, among cryptocurrencies, Bitcoin and Ether garner the lion’s share of client attention. According to Mitchnick’s prediction, investors will eventually put 20% of their cryptocurrency holdings into Ether while keeping the bulk in Bitcoin.
BlackRock CEO Recognizes Bitcoin As “Digital Gold”
Larry Fink, CEO of BlackRock, has lately admitted to having a change of heart about Bitcoin, which adds to this viewpoint. In an interview, he recently spoke about the decentralized asset, calling it “digital gold” and a “legitimate” form of currency.
As Fink pointed out, Bitcoin’s uncorrelated returns make it an attractive investment during economic uncertainty and currency debasement caused by huge deficits in some countries. “It is a real financial tool that lets you potentially have uncorrelated returns,” he stated. I think it’s more of a tool for feeling scared.
In the meantime, Mitchnick has expressed reservations about the Solana and XRP ETFs launch, stating that he worries about the assets’ maturity, liquidity, and lack of clarity around regulations.
According to Mitchnick, there won’t be many cryptocurrency exchange-traded funds. Currently, Bitcoin accounts for almost 55% of the market capitalization. Ethereum is trading at 18%. Around 3% is the next reasonable investment asset. The required level of maturity, liquidity, etc., is not met.
According to Mitchnick, who spoke on the opening day of the Bitcoin Conference 2024, the SEC’s reluctance to approve ETFs based on altcoins like XRP and Solana could be due to their concerns with spot Ether ETFs, including staking facilities.
