Bitcoin ETFs Surge on $620M Inflows Amid Coldcard Hack
Bitcoin exchange-traded funds (ETFs) have seen significant inflows in recent days, totaling $620 million. According to Bloomberg senior ETF analyst Eric Balchunas, this increase has been steady over the past week and coincides with a high-profile hack of Coldcard wallets.
The hack, which affected more than 5,200 wallet addresses, drained over $116 million worth of Bitcoin from users who stored their assets on the platform. This incident has reignited concerns about the security of self-custody methods, particularly when it comes to hardware wallets.
Some experts, like Binance co-founder Changpeng 'CZ' Zhao, argue that storing cryptocurrency on centralized exchanges may now be statistically safer than self-custody due to the cumulative losses from self-custody incidents surpassing those from exchange hacks. However, others remain cautious about drawing a direct link between the hack and the increased demand for ETFs.