Bitcoin ETFs Draw Record $1 Billion as Self-Custody Fears Rise

Bitcoin ETFs saw their strongest week of inflows since April, attracting around $1 billion in new capital. The funds started to gain traction after a hack on Coldcard hardware wallets raised concerns about the safety of self-custody options for Bitcoin investors.

The iShares Bitcoin Trust (IBIT), managed by BlackRock, led the charge with over $757 million flowing into the fund over a seven-day period. This includes a single day where IBIT pulled in $128.3 million.

While the numbers are impressive, analysts caution against drawing a direct connection between the Coldcard exploit and the surge in ETF inflows. However, the hack did highlight the risks associated with self-custody, making regulated ETFs with institutional-grade custody more appealing to investors who were hesitant to commit.