SEC fines BlackRock $2.5 million for concealing information

SEC filed charges against BlackRock for “the inability to accurately describe investments in the entertainment industry.” The company agreed to pay a $2.5 million fine.

The SEC contends that from 2015 to 2019 the Multi-Sector Income Trust fund invested in the film company Aviron Group. BlackRock allegedly described it as a firm providing “diversified financial services,” but that was incorrect, the Commission said.

“Retail and institutional investors rely on accurate information about the companies that comprise the portfolio of a closed- or mutual fund to assess current or potential investments,” the agency said.

BlackRock also allegedly stated that Aviron paid a higher rate than it actually did. According to the SEC, in 2019 the fund manager discovered these inaccuracies and corrected them in future filings.

The crypto industry has been watching BlackRock since June 2023, when the company filed an application to register a spot Bitcoin-ETF. Following the financial giant, similar filings came from Valkyrie, Fidelity Investments, WisdomTree and Invesco.

On August 31, the SEC delayed a decision on several spot Bitcoin ETFs at least until mid-October. In late September the regulator moved back the consideration of filings to January 2024.

On October 24, the proposed BlackRock spot Bitcoin ETF — the iShares Bitcoin Trust — appeared on the list of DTCC assets for which the company provides post-trade, clearing, and settlement services.

However later the ETF listing disappeared from the platform’s site. Reporter Colin Wu, citing unnamed analysts, said the Commission may have contacted BlackRock, “asking them to wait.” In the wake of the news, Bitcoin’s price fell to $33,500.

Earlier, the crypto media Cointelegraph published a post on X about the approval of BlackRock’s spot Bitcoin ETF. In the wake of the news, the price of the first cryptocurrency jumped to $30,000, but fell just as quickly after reports of a hoax.

Earlier, Matrixport analysts forecast a rise in digital gold to $42,000–$56,000. CryptoQuant reported figures of $50,000–$73,000.