BlackRock, a major New York-based asset management firm, has recently issued a warning about an alarming increase in cryptocurrency scams. These fraudulent activities are specifically targeting investors interested in BlackRock’s iShares spot Bitcoin and Ether exchange-traded funds (ETFs).
The firm has cautioned investors to be vigilant against deceitful practices, particularly those involving fake websites and social media impersonation.
In their alert, BlackRock advised investors to be extremely cautious when interacting with individuals or entities claiming to represent the company on social media platforms.
The scammers often use channels like WhatsApp and Telegram to lure victims by offering fraudulent investment opportunities or training programs. This surge in scams has prompted BlackRock to urge its clients to scrutinize any communications or offers that seem suspicious.
BlackRock Warns of Rising Cryptocurrency Scams Targeting Bitcoin and Ether ETF Investors
The firm clarified that it does not use social media to solicit payments or offer investment services. BlackRock’s warning comes amid significant success for its iShares Bitcoin Trust (IBIT), which has attracted $19.7 billion in Bitcoin investments since its launch in January.
This remarkable performance has established IBIT as the leading U.S.-approved spot Bitcoin ETF, surpassing other competitors in terms of total inflows and assets under management.
At the recent Bitcoin 2024 conference in Nashville, Robert Mitchnick, BlackRock’s head of crypto assets, shared insights into the firm’s client preferences. Mitchnick noted that the majority of BlackRock’s clients prefer Bitcoin, with some interest in Ether, while other digital assets remain less appealing.
He also forecasted that investors might allocate around 20% of their crypto holdings to Ether, with the rest primarily in Bitcoin.
In related news, BlackRock CEO Larry Fink has recently described Bitcoin as “digital gold,” recognizing its potential as a legitimate financial asset. This shift in perspective highlights Bitcoin’s growing acceptance in the financial sector.
Additionally, discussions about Bitcoin’s role as a reserve asset in the U.S. have intensified, spurred by Senator Cynthia Lummis’s proposed bill for a strategic Bitcoin reserve. Ripple’s CTO, David Schwartz, contributed to this debate by emphasizing Bitcoin’s transaction adaptability and the balance between blockchain security and centralized service efficiency.
