BlackRock has warned about investment scams linked to the recent boom in exchange-traded funds (ETFs). The financial giant highlighted an increase in cryptocurrency fraud attempts, possibly driven by the growth in the digital assets sector through ETFs.
Rise in fraudulent activities
In a recent post on X, BlackRock alerted users to a significant rise in fraudulent activities. These scams often direct individuals to crypto investment websites and social media platforms like Telegram and WhatsApp. The firm urged investors to be cautious when dealing with such platforms and individuals offering investment opportunities.
Scammers are reportedly impersonating BlackRock representatives to target crypto ETF investors. The financial firm emphasized that its executives would not contact individuals on social media with financial offers. BlackRock advised users to stay vigilant and avoid engaging in suspicious activities.
BlackRock’s dominance in Crypto ETFs
BlackRock’s iShares Bitcoin Trust (IBIT) has amassed over $19.7 billion in Bitcoin since its launch in January 2024, making it the leading spot BTC ETF. In contrast, the Grayscale Bitcoin Trust ETF (GBTC) has seen an outflow of $18.81 billion during the same period. Additionally, BlackRock’s iShares Ethereum Trust (ETHA) is emerging as a significant player in the ETH ETF market, with a $442.1 million inflow since trading began. Meanwhile, Grayscale’s ETHE recorded the highest outflow at $1.51 billion.
Robert Mitchnick, BlackRock’s Head of Digital Assets, expressed skepticism about approving new crypto ETFs at the Bitcoin Conference 2024. He highlighted Bitcoin and Ether’s market dominance and the SEC’s cautious stance on ETFs offering staking services as barriers to new ETF approvals. Mitchnick cast doubt on the likelihood of ETFs for top tokens like Solana (SOL) and Ripple (XRP) being approved shortly.
However, Nate Geraci, president of ETH Store, offered a counterpoint to Mitchnick’s view. He pointed to Europe’s success with similar products for Solana, XRP, and Cardano, suggesting that regulatory changes could pave the way for similar adoption in the US.
Market reactions and trends
Bitcoin has maintained its upward trajectory since the launch of spot Bitcoin ETFs in the US market, showing a 65% increase year-to-date (YTD). At the time of writing, BTC is trading at an average price of $69,784. In contrast, Ether experienced a correction due to fluctuations in the ETF market.
Despite a 4% drop in the last seven days, ETH rebounded with a 3.3% surge in the past 24 hours, currently trading at an average price of $3,377. BlackRock’s advisory timely reminds investors to exercise caution and stay informed about potential scams in the rapidly evolving cryptocurrency market.
The post BlackRock Alerts Investors to Increasing Crypto Scams Amid ETF Surge first appeared on Coinfea.
