Bitcoin Spot ETFs See Record Weekly Inflows Amid Cold Storage Hacks

US Bitcoin spot exchange-traded funds (ETFs) saw their strongest weekly inflows since April, attracting roughly $1 billion in net inflows. This surge follows a period of uneven flows and uncertainty around digital asset regulation and crypto self-custody.

The rebound comes after a major security incident involving Coldcard, a popular Bitcoin hardware wallet developed by Coinkite, which resulted in the theft of about $116 million worth of Bitcoin. The exploit was linked to a flaw in how affected devices generated wallet keys.

According to Bloomberg ETF analyst Eric Balchunas, the cold storage hack has potentially strengthened the appeal of spot Bitcoin ETFs among investors who are uncomfortable with technical and security responsibilities associated with self-custody.