Bitcoin ETF Inflows Surge After Coldcard Hack
Bitcoin ETFs have experienced their best week since April, with investors pumping in $853.54 million across five trading sessions.
This influx is significant, considering that the funds barely recovered any of the $8.26 billion lost over eight straight weeks through July.
The sudden interest in ETFs comes just days after a major hacking incident involving Coldcard wallets, which saw attackers drain thousands of self-custody wallets and steal an estimated $116 million to $130 million worth of Bitcoin.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, argued that ETFs offer a safer alternative to cold storage, as they eliminate the risk of seed phrase vulnerabilities. He noted that ETF holders never touch seed phrases, as a custodian holds the Bitcoin and the investor holds shares.