Bitcoin News Today: BlackRock's ETF and Telecom Fraud: A Test of Crypto Market Confidence

BlackRock Inc.'s Bitcoin exchange-traded fund (ETF) has become a focal point in the crypto market as investors weigh its potential to stabilize Bitcoin's price amid a turbulent landscape. However, the firm's recent exposure to a $500 million telecom fraud linked to Indian-origin entrepreneur Bankim Brahmbhatt has raised questions about its ability to act as a reliable pillar of confidence for BTC.

The controversy began with BlackRock's private-credit arm, HPS Investment Partners, which fully wrote off a $150 million investment tied to Brahmbhatt's telecom firms, Broadband Telecom and Bridgevoice, a Bloomberg report said. Court filings describe the scheme as "extraordinarily brazen," with allegations that Brahmbhatt fabricated accounts receivable and diverted funds to offshore accounts in Mauritius and India, an El Balad report added. HPS, which had partnered with BNP Paribas to finance the loans, discovered the fraud in July 2025 after identifying forged emails and signatures used to collateralize the debt, Millennium Post reported. The fallout has intensified scrutiny of asset-based lending in private credit, a sector already reeling from collapses like subprime auto lender Tricolor Holdings, according to Business Upturn.

Meanwhile, BlackRock's cryptocurrency ETFs have shown mixed performance. On November 1, the firm transferred $506 million in Bitcoin and Ethereum to Coinbase Prime, a move interpreted as a potential precursor to selling or rebalancing its portfolio, Finbold reported. This activity mirrored a week of volatile inflows and outflows for its iShares Bitcoin ETF (IBIT), which saw $384 million in outflows over five days, nearly matching the Bitcoin transferred to Coinbase. The ETF's struggles reflect broader market jitters: U.S. Bitcoin ETFs lost $946 million in the week ending November 3, driven by a hawkish Federal Reserve stance and uncertainty over the government shutdown, Yahoo Finance reported.

BlackRock's foray into Bitcoin exposure is not limited to U.S. markets. The firm plans to launch its iShares Bitcoin ETF on Australia's ASX in mid-November, offering local investors a regulated avenue to bet on BTC without direct ownership, Coinpedia reports. This expansion underscores its confidence in ETF-driven adoption, even as Bitcoin's price has dipped below $108,000—a 3.5% drop from its recent peak—amid tempered optimism following U.S.-China trade de-escalation and President Donald Trump's restrictive comments on AI chip exports, FXStreet reported.

Institutional demand for Bitcoin appears to be cooling. SoSoValue data shows spot ETFs recorded a $789.95 million outflow in the week ending November 1, signaling waning confidence. However, some corporate treasurers are adopting a counter-cyclical approach, with firms like Matador locking $100 million in Bitcoin to accumulate long-term holdings, BeInCrypto reported. Analysts remain cautiously optimistic, noting that November has historically been BTC's strongest month, averaging 42.32% returns.

The interplay between BlackRock's dual roles-as both a victim of a high-profile fraud and a major crypto ETF issuer-highlights the complexities facing institutional players in the crypto space. While the firm's ETFs could provide a lifeline for BTC amid a bearish phase, the telecom scandal serves as a cautionary tale about the risks of asset-backed lending. For now, the market will be watching whether BlackRock's ETFs can offset broader selling pressures or if BTC's downward trajectory continues.