BlackRock has warned investors about a rise in crypto scams targeting people who invest in its Bitcoin and Ether ETFs. The company, known for managing a huge amount of assets, has seen an increase in scammers pretending to be BlackRock representatives on social media. These scammers often lure victims by offering fake investment opportunities or training.
On July 29, BlackRock issued a caution to investors to be wary of anyone contacting them through social media claiming to be from BlackRock. These imposters are using platforms like WhatsApp and Telegram to direct people to fraudulent investment websites. BlackRock stressed that they never use social media to ask for payments or offer investments.
Scammers have been particularly active with BlackRock’s iShares Bitcoin Trust (IBIT), which has attracted $19.7 billion in Bitcoin since it launched on January 11. This fund has become the largest in terms of total inflows, surpassing all other U.S.-approved Bitcoin ETF providers combined.
Robert Mitchnick, who leads BlackRock’s digital assets division, mentioned at the Bitcoin 2024 conference on July 25 that their clients mostly show interest in Bitcoin and Ether. He noted that there is very little interest in other cryptocurrencies at the moment. Mitchnick expects that eventually, investors will split their crypto holdings with about 20% in Ether and the rest in Bitcoin.
BlackRock CEO Larry Fink has recently changed his view on Bitcoin, calling it “digital gold” and a valid financial tool. In a CNBC interview with Jim Cramer, Fink explained that Bitcoin is a legitimate financial asset that can offer returns that are not correlated with other investments.
