BlackRock ETFs Draw $850 Million Amid Bitcoin Cold Storage Hack
Bitcoin exchange-traded funds (ETFs) have seen their biggest weekly inflows since April, taking in $850 million last week, according to Bloomberg figures.
The major U.S. ETFs managed by BlackRock, Fidelity, Grayscale, Morgan Stanley, and others received the cash after hackers targeted Coinkite's popular Coldcard product, stealing millions of dollars in Bitcoin from Coldcard wallets due to a vulnerability in the product's software.
Some estimates put the amount of lost Bitcoin at over $130 million. BlackRock has stated that investors are buying and holding BTC 'long term' on this dip, with the company seeing consistently that ETF investors exhibit this behavior through downturns.
The incident has raised questions about the security of cold storage solutions, which typically praise their ability to protect against hacks like this one.
Robert Mitchnick, global head of digital assets at BlackRock, explained on Bloomberg's ETF IQ show that since the ETFs' approval in 2024, investors have sought a 'very simple turnkey trusted vehicle' that eliminates the need to worry about crypto security.