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Asset management giant BlackRock has issued a crucial warning to investors about a significant rise in crypto scams targeting holders of its iShares spot Bitcoin and Ether ETFs. The company took to social media platform X to alert the public about fraudsters impersonating BlackRock representatives, urging investors to exercise caution.
BlackRock’s recent advisory highlights a troubling increase in scams designed to exploit social media platforms. These fraudsters create fake accounts, posing as BlackRock officials, and attempt to engage with unsuspecting investors. The company’s message is clear: avoid any social media interactions with individuals claiming to represent BlackRock, especially those soliciting investments or payments.
According to BlackRock, these scams often lure victims to fraudulent websites or social media platforms like WhatsApp and Telegram, where they are deceived into making investments. The rise in these types of scams is particularly alarming for Bitcoin ETF investors.
The company has made it clear that it never reaches out to individuals via social media for investment opportunities or payment solicitations. This firm stance is part of BlackRock’s broader effort to protect its investors from increasingly sophisticated scams.
Since its inception on January 11, BlackRock’s iShares Bitcoin Trust (IBIT) has seen significant growth, amassing $19.7 billion in total inflows. This rapid expansion underscores the fund’s market prominence and the increased scrutiny it faces from scammers.
At the recent Bitcoin 2024 conference in Nashville, Tennessee, BlackRock’s head of digital assets, Robert Mitchnick, addressed the issue of rising scams. He noted that investor interest is overwhelmingly concentrated on Bitcoin and Ether, with little interest in other cryptocurrencies. Mitchnick predicts that investors will eventually allocate around 20% of their crypto holdings to Ether, with the majority remaining in Bitcoin.
Adding to the discussion, BlackRock CEO Larry Fink has recently shifted his stance on Bitcoin, referring to it as “digital gold” and acknowledging it as a legitimate financial instrument. During an interview, Fink highlighted Bitcoin’s potential to offer uncorrelated returns, making it an attractive investment, particularly in times of economic uncertainty and currency debasement caused by excessive deficits in some countries.
Despite the enthusiasm for Bitcoin and Ether, Mitchnick has expressed caution regarding the launch of ETFs for other cryptocurrencies like Solana and XRP. He cited concerns over the maturity, liquidity, and regulatory clarity of these assets. During the Bitcoin 2024 conference, Mitchnick mentioned that the SEC’s unease with spot Ether ETFs offering staking facilities could delay approval for ETFs based on altcoins such as Solana and XRP.
BlackRock’s proactive approach in warning its investors about the rising tide of crypto scams is a testament to its commitment to investor protection. As the popularity of Bitcoin and Ether continues to grow, so does the need for vigilance against fraudulent activities. Investors are advised to stay informed and cautious, ensuring their investments are secure from potential scams.
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