Business Markets News Report
August 02, 2023

BlackRock Investigated by SEC, Is the ETF Bet in Danger?

In Brief

BlackRock and MSCI have drawn scrutiny over China-related questions. The United States congressional committee is investigating the companies as they have reportedly facilitated investments in several blacklisted Chinese companies.

In June this year, BlackRock officially filed for a spot in the Bitcoin exchange-traded fund. However, with the new investigation on the asset manager, it is not clear if the crypto ETF initiative will be safe.

Multinational investment company BlackRock and index provider MSCI (Morgan Stanley Capital International), both based in New York City, have drawn scrutiny over China-related questions. The United States congressional committee is investigating the companies as they have reportedly facilitated investments in several blacklisted Chinese companies.

BlackRock Investigated by SEC, Is the ETF Bet in Danger?

As stated in the letters issued on Monday by the House of Representatives Select Committee on the Chinese Communist Party, both BlackRock and MSCI assisted in the transfer of American money into businesses that the U.S. government had identified as responsible for funding Chinese military development or human rights violations. As of the time of writing, shares in BlackRock have gone down 0.89%.

“With all investments in China and markets around the world, BlackRock complies with all applicable U.S. government laws. We will continue engaging with the Select Committee directly on the issues raised,” said BlackRock on Tuesday, August 2. But with the SEC’s ongoing investigation into the asset manager, will the ETF initiative be safe? 

In June this year, BlackRock and several United States banks started actively accumulating digital assets. Normally, banks are hesitant about digital assets, but this time they purchased record amounts of crypto. So, BlackRock, which had bought over $200 million worth of Bitcoin and other cryptocurrencies, was rumored to launch a crypto exchange-traded fund (ETF). 

The same month, BlackRock recruiter Serge Varlay, who was secretly filmed by OMG News’ undercover journalist, shared that the company “buys” politicians and tells them what to do. This information was revealed as BlackRock officially filed for a spot in the Bitcoin exchange-traded fund and digital asset marketplace EDX Markets went live. Notably, in the same period, the two largest cryptocurrency exchanges, Binance and Coinbase, were being investigated by the Securities and Exchange Commission. 

However, with the new investigation of the SEC on BlackRock, it is not clear if the crypto ETF initiative will be safe.

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About The Author

Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at [email protected]

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Valeria Goncharenko
Valeria Goncharenko

Valeria is a reporter for Metaverse Post. She focuses on fundraises, AI, metaverse, digital fashion, NFTs, and everything web3-related. Valeria has a Master’s degree in Public Communications and is getting her second Major in International Business Management. She dedicates her free time to photography and fashion styling. At the age of 13, Valeria created her first fashion-focused blog, which developed her passion for journalism and style. She is based in northern Italy and often works remotely from different European cities. You can contact her at [email protected]

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