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BlackRock Asset Management has sent a warning to its investors regarding the significant increase of crypto scams aimed at holders of the iShares Spot Bitcoin and Ether Exchange Traded Funds. BlackRock used the social networking platform X as a way to inform investors of fraudsters posing as BlackRock reps.
BlackRock’s latest advisory highlights an alarming increase in social media scams. Fraudsters pose as BlackRock employees and create fake social media accounts to try engaging with unwitting investors. BlackRock’s official message to its customers is: do not interact with anyone claiming they represent BlackRock on social media, particularly those who are soliciting payments or 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 has taken a firm stand to safeguard its investors against increasingly sophisticated scams.
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. This rapid growth underscores both the market’s prominence of the fund and its increased scrutiny by scammers.
Robert Mitchnick addressed this issue at the Bitcoin 2024 Conference in Nashville, Tennessee. Investors are mainly interested in Bitcoin and Ether. Other cryptocurrencies have little appeal, he said. Mitchnick predicted that around 20% to 30% of investors’ crypto holdings will be allocated to Ether. The majority, however, would remain in Bitcoin.
BlackRock CEO Larry Fink recently changed his position on Bitcoin by referring to Bitcoin as “digital gold” It is a legal financial instrument. Fink, in an interview, highlighted Bitcoin’s ability to provide uncorrelated returns. This makes it a very attractive investment in uncertain economic times and when currencies are devalued by countries with excessive deficits.
Mitchnick expressed his caution about the launch of ETFs based on other cryptocurrencies, such as Solana and XRP. Mitchnick expressed concerns about the liquidity and clarity of regulatory rules, as well as their maturity. Mitchnick said that, during the Bitcoin 2024 Conference, the SEC was uneasy about spot Ether ETFs providing staking capabilities. This could cause delays in the approval of ETFs based upon altcoins like Solana or 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 for vigilante activity 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
