New York-based asset management giant BlackRock noticed an increase in crypto scammers targeting Bitcoin and Ethereum investors on iShares and issued a warning against social media impersonators. On July 29, BlackRock urged investors to avoid all social media interactions with individuals or businesses posing as BlackRock representatives, who typically lure victims by offering education or investment opportunities.
Scammers Target ETF Funds
Scammers impersonating BlackRock are actively targeting crypto exchange-traded fund investors through various social media platforms. It is worth reminding users that BlackRock never contacts users via social media platforms to request payments or offer investments.
BlackRock’s iShares Bitcoin Trust (IBIT) fund has raised $19.7 billion in about seven months since its launch on January 11. It is currently the leader in total inflows, surpassing the combined investments of the other nine spot Bitcoin ETF providers approved by the US.
Details on the Matter
BlackRock’s head of crypto assets Robert Mitchnick spoke at the Bitcoin 2024 conference in Nashville, Tennessee, on July 25, stating that the firm sees very little interest in crypto beyond Bitcoin and Ethereum among its clients:
“Today, I can say that our customer base is overwhelmingly interested primarily in Bitcoin and then some in Ethereum, and beyond these two, there is very little interest today.”
Mitchnick added that he expects investors to allocate about 20% of their crypto assets to Ethereum, with the remainder going to Bitcoin. BlackRock CEO Larry Fink recently changed his opinion on Bitcoin, stating that he believes the decentralized asset is digital gold and a legitimate financial instrument. In an interview with Jim Cramer on CNBC, he shared the following thoughts:
“Bitcoin is probably a legitimate financial instrument that allows you to achieve uncorrelated returns.”
