Bitcoin ETFs Plunge $389.7 Million Amid Rare Cold Wallet Hack

A sharp reversal in investor behavior has shaken the Bitcoin ETF market, with spot funds experiencing their largest weekly outflows since late June. The sudden change comes after a blistering start to August, during which US-listed Bitcoin funds pulled in $853.5 million, marking the strongest weekly inflow since April.

The reversal is largely attributed to a rare security scare involving cold wallets, an event that has renewed investor focus on digital asset security. The hack targeted a brand of cold wallets, typically marketed as one of the safest ways to hold digital assets, and has led to outflows of $389.7 million in the week of August 10.

The rapid shift in investor behavior raises questions about whether this is a temporary breather or the start of something longer-term. The data suggests that security shocks in the digital asset space can have a significant impact on market psychology and institutional money flows.