$116M Crypto Hack Sparks Self-Custody Debate as Bitcoin ETFs Attract Record Inflows
A reported $116 million hardware wallet exploit has reignited debate over self-custody, while US spot Bitcoin ETFs saw their strongest weekly inflows since April. The vulnerability in Coldcard-related hardware wallets tied to the $116 million drained in Bitcoin has pushed attention back toward self-custody risks.
The incident may enhance the appeal of ETFs for investors concerned about self-custody risks, according to Bloomberg analyst Eric Balchunas. However, correlation does not imply causation, and it remains uncertain whether inflows will persist beyond a short-term narrative effect or return to a more typical pattern as memories fade.
Strategy CEO Phong Le said the company intends to resume Bitcoin accumulation later this year after scrutinized smaller sales this year. Strategy has 'bought' roughly 175,000 BTC and sold about 7,000 BTC this year, roughly 25 times more buying than selling. The company now holds more than 840,000 BTC and remains the largest institutional Bitcoin holder.