BlackRock Alerts Investors Against Rising Crypto Scams Targeting Bitcoin and Ether ETF Holders

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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July 29, 2024

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Asset management titan BlackRock has sounded the alarm on a surge in crypto scams aimed at investors in its iShares spot Bitcoin and Ether ETFs.

In a recent post on X, the company cautioned against engaging with social media impersonators pretending to be BlackRock representatives.

The alert specifically advises investors to steer clear of any social media interactions with entities posing as BlackRock.

“There has been a spike in investment-related scams, including directing users toward crypto investment-related websites and/or social media platforms such as WhatsApp or Telegram,” the company said.

Scams Targeting Bitcoin ETF Investors Increase

BlackRock’s statement highlights the growing prevalence of investment-related scams, which frequently direct users to fraudulent crypto investment websites or social media platforms such as WhatsApp or Telegram.

The increase in scams targeting Bitcoin ETF investors is particularly concerning.

These scammers are exploiting social media to impersonate BlackRock and deceive ETF investors.

BlackRock emphasized that it never contacts users via social media to solicit payments or offer investment opportunities.

“Please remain vigilant and if you suspect fraudulent activity, do not proceed.”

There has been a spike in investment-related scams, including directing users toward crypto investment-related websites and/or social media platforms such as WhatsApp or Telegram. We urge caution in dealing with individuals, websites or social media platforms using our brand and…

— BlackRock (@BlackRock) July 28, 2024

Since its launch on January 11, BlackRock’s iShares Bitcoin Trust (IBIT) has amassed $19.7 billion, making it the leader in total inflows among U.S.-approved spot Bitcoin ETF providers.

The fund’s rapid growth underscores its prominence in the market.

Robert Mitchnick, BlackRock’s head of digital assets, addressed the issue during the Bitcoin 2024 conference in Nashville, Tennessee, on July 25.

He noted that client interest predominantly focuses on Bitcoin and Ether, with minimal interest beyond these two cryptocurrencies.

Mitchnick predicts that investors will eventually allocate about 20% of their crypto holdings to Ether, with the majority remaining in Bitcoin.

BlackRock CEO Recognizes Bitcoin As “Digital Gold”

Adding to this perspective, BlackRock CEO Larry Fink has recently acknowledged his change of heart regarding Bitcoin.

During a recent interview, he described the decentralized asset as “digital gold“ and a “legitimate” financial instrument.

Fink also highlighted Bitcoin’s potential as an investment that offers uncorrelated returns, particularly attractive during times of economic uncertainty and currency debasement due to excessive deficits in some countries. He said:

“It is a legitimate financial instrument that allows you to maybe have uncorrelated type of returns. I believe it is an instrument that you invest in when you’re more frightened, though.”

Meanwhile, Mitchnick has recently tempered expectations for the launch of Solana and XRP ETFs, citing concerns over the assets’ maturity, liquidity, and regulatory clarity.

“I don’t think we’re going to see a long list of crypto ETFs,” Mitchnick said.

“If you think of Bitcoin, today it represents about 55% of the market cap. ETH is at 18%. The next plausible investible asset is at, like, 3%. It’s just not close to being at that threshold or track record of maturity, liquidity, et cetera.”

During the first day of the Bitcoin Conference 2024, Mitchnick said that the SEC’s discomfort with spot Ether ETFs that offer staking facilities could delay approval for ETFs based on altcoins like Solana and XRP.