New York-based asset management giant BlackRock highlighted the increase in fraud activities targeting cryptocurrency investors. There has been a rise in social media scammers targeting the company’s iShares Bitcoin and Ethereum exchange-traded funds (ETFs) investors. BlackRock warned investors against such fraudulent attempts and advised them to ignore requests from individuals posing as BlackRock representatives on social media platforms.
BlackRock Warns About Social Media Scammers
In a warning issued on July 29, BlackRock stated that investors should be cautious of fake BlackRock representatives offering investment education or opportunities on social media platforms like WhatsApp or Telegram. These scammers often try to direct users to fake cryptocurrency investment sites or platforms. BlackRock added that the company never requests payments or offers investments through social media.
These fraud activities targeting cryptocurrency ETF investors are primarily due to the rapid rise in popularity of BlackRock’s Bitcoin and Ethereum ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) fund has attracted approximately $19.7 billion worth of Bitcoin since its launch on January 11, holding more BTC than all other approved spot Bitcoin ETF providers in the US combined.
BlackRock’s head of digital assets, Robert Mitchnick, stated that the company is not interested in cryptocurrencies other than Bitcoin and Ethereum. Speaking at the Bitcoin 2024 conference in Nashville, Tennessee, Mitchnick noted that most investors are primarily interested in Bitcoin, with some interest in Ethereum. He also predicted that in the future, investors would allocate about 20% of their cryptocurrency portfolios to Ethereum and the rest to Bitcoin.
Increased Interest in Bitcoin by BlackRock CEO Fink
As is known, BlackRock CEO Larry Fink made a complete U-turn on Bitcoin and has recently referred to the largest decentralized cryptocurrency as “digital gold” and a “legitimate” financial instrument. In his latest interview with CNBC, Fink stated that Bitcoin is a legitimate financial instrument that can provide “uncorrelated returns.”
