Bitcoin ETF Inflows Soar to $1B Amid Cold-Storage Concerns
U.S. spot Bitcoin exchange-traded funds recorded $1 billion in net inflows last week, marking their strongest weekly performance since April.
The inflows were spread across multiple funds, including BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC), both of which saw positive daily flows.
According to Bloomberg Intelligence ETF analyst Eric Balchunas, the uptick came shortly after a reported security incident involving a cold-storage wallet provider, which raised questions about the safety of direct cryptocurrency custody.
While concerns over self-custody risks may have prompted some investors to seek the regulated, institutional wrapper that ETFs provide, Balchunas noted that the situation is potentially ironic: a hack that exposed vulnerabilities in cold storage could ultimately drive more capital into Bitcoin exposure via traditional financial products.