Investment behemoth BlackRock has sounded the alarm over a rising tide of crypto scams targeting investors in its iShares spot Bitcoin and Ether ETFs. The firm is urging investors to exercise extreme caution against social media impersonators promising lucrative investment opportunities.
In a statement, BlackRock emphasized that it never initiates contact with investors through social media platforms, such as WhatsApp or Telegram, to solicit payments or offer investment advice. The company is particularly concerned about the escalating number of scams targeting investors in crypto exchange-traded funds (ETFs).
BlackRock’s iShares Bitcoin Trust (IBIT) has garnered significant attention since its launch in January, amassing a staggering $19.7 billion in assets under management. Its dominance in the space has made it a prime target for scammers looking to capitalize on investor enthusiasm.
While Bitcoin remains the dominant cryptocurrency in terms of investor interest, BlackRock’s head of digital assets, Robert Mitchnick, indicated a growing appetite for Ether. He anticipates that investors may eventually allocate around 20% of their crypto holdings to Ethereum, with the remaining portion invested in Bitcoin.
The evolving stance of BlackRock, a traditional financial institution, towards cryptocurrencies is noteworthy. CEO Larry Fink has undergone a transformation, now viewing Bitcoin as “digital gold” and a legitimate financial instrument. This shift in perspective has contributed to the growing institutional interest in the crypto market.
As the crypto ecosystem continues to mature, investors must remain vigilant against scams. BlackRock’s warning serves as a stark reminder of the risks associated with digital assets and the importance of conducting thorough due diligence before making investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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