New York-based asset management giant BlackRock has alerted investors to the rising menace of crypto scammers targeting Bitcoin and Ethereum investors on social media. On July 29, the firm advised its clientele to refrain from engaging with individuals or businesses posing as BlackRock representatives, who often lure victims by offering educational or investment opportunities.
How are Scammers Targeting ETF Funds?
Impersonators of BlackRock are aggressively targeting crypto exchange-traded fund (ETF) investors via various social media platforms. BlackRock has emphasized that it never contacts users through social media to request payments or propose investments, a reminder aimed at safeguarding users from potential scams.
Since the launch of BlackRock’s iShares Bitcoin Trust (IBIT) fund on January 11, the fund has amassed $19.7 billion in investments. It has emerged as the market leader, surpassing the combined investments of the other nine spot Bitcoin ETF providers authorized in the US.
What Are the Details on the Matter?
Robert Mitchnick, BlackRock’s head of crypto assets, spoke at the Bitcoin 2024 conference in Nashville, Tennessee, revealing that the firm’s clients show significant interest primarily in Bitcoin and Ethereum. Mitchnick noted that beyond these two leading cryptocurrencies, client interest wanes considerably.
He predicted that investors might allocate around 20% of their crypto portfolios to Ethereum, with the balance favoring Bitcoin. Additionally, BlackRock CEO Larry Fink has recently revised his stance on Bitcoin, now viewing it as digital gold and a legitimate financial instrument. In a CNBC interview with Jim Cramer, Fink remarked that Bitcoin provides uncorrelated returns, highlighting its financial legitimacy.
Actionable Insights for Investors
- Remain cautious of unsolicited investment offers on social media.
- Verify the identity of individuals claiming to represent financial institutions.
- Understand that BlackRock does not solicit payments or investment opportunities via social media.
In conclusion, BlackRock’s advisory aims to protect investors from fraudulent schemes proliferating on social media platforms. By staying vigilant and informed, investors can better safeguard their assets and avoid falling prey to scammers.