Bitcoin ETFs Surge as Coldcard Hack Reignites Custody Debate
US-listed spot Bitcoin exchange-traded funds (ETFs) have seen significant inflows in recent days, as investors reevaluate digital asset security following a high-profile custody incident.
A Coldcard hack has reportedly affected up to 7,300 addresses and resulted in about $130 million in suspected Bitcoin losses from users of the hardware wallet. The incident has reignited debate over the merits of institutional custody solutions offered through regulated financial products.
The SoSoValue data shows that spot Bitcoin ETFs recorded $211.5 million in net inflows on Tuesday, adding to Monday's $170 million. BlackRock's iShares Bitcoin Trust (IBIT) led the ETF recovery, recording $111 million in inflows on Monday and $170 million on Tuesday.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted that the Coldcard hack could encourage greater migration toward Bitcoin ETFs as investors reconsider the role of institutional custody. He pointed out that what was once considered a 'bug' by some crypto users may now seem like a feature compared to smaller crypto companies.