BlackRock, a global asset management company, has warned investors of a dramatic increase in the number of crypto-scams that target holders iShares ETFs for Bitcoin and Ether. BlackRock used the social networking platform X as a way to inform investors of fraudsters posing as BlackRock reps.
BlackRock’s advisory released recently highlights the alarming rise in frauds that target social media. Fraudsters pose as BlackRock employees and create fake social media accounts to try engaging with unwitting investors. BlackRock has a clear message: Do not engage in social media conversations with people claiming to be BlackRock employees, or those asking for payments and investments.
BlackRock reports that these scams lure their victims to fake websites and social media platforms such as WhatsApp or Telegram where they are tricked into investing. This is especially alarming to Bitcoin ETF investors.
It has been made clear by the company that they will never contact individuals through social media to solicit payment or offer investment opportunities. BlackRock takes a strong stance to help protect investors from sophisticated frauds.
BlackRock’s iShares Bitcoin Trust, or IBIT, has grown significantly since it was launched on January 11th. The total amount of inflows is now $19.7 billion. The fund has experienced rapid growth, which is a reflection of its market dominance and increased scrutiny from scammers.
Robert Mitchnick addressed this issue at the Bitcoin 2024 Conference in Nashville, Tennessee. Investors are largely focused on Bitcoin, Ether and other cryptocurrencies. Mitchnick believes that eventually investors will allocate 20% of their cryptocurrency holdings towards Ether and the rest to Bitcoin.
BlackRock CEO Larry Fink recently changed his position on Bitcoin by referring to Bitcoin as “digital gold” And acknowledging that it is a valid financial instrument. Fink said in an interview that Bitcoin has the potential to deliver uncorrelated returns. It is therefore a good investment.
Mitchnick expressed his caution about the launch of ETFs based on other cryptocurrencies, such as Solana and XRP. His concerns were over their liquidity, maturity and regulatory clarity. Mitchnick stated that SEC concerns about ETFs based solely on spot Ether, which offer staking features, could slow down approvals for altcoin ETFs such as Solana and XRP.
BlackRock’s approach of warning investors against the growing tide of cryptocurrency scams is testament to their commitment to protect investors. The popularity of Bitcoin, Ether and other crypto currencies continues to rise. This means that the need to be vigilant against fraud is also increasing. Investors must be vigilant and informed to ensure their investments remain safe from possible scams.
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Source: cryptocoin.news