Coldcard Breach Sparks Renewed Interest in US Spot Bitcoin ETFs

A recent security failure involving Coldcard has led Bloomberg Intelligence senior ETF analyst Eric Balchunas to argue that U.S. spot Bitcoin ETFs are a preferable option for investors seeking long-term price exposure without managing private keys.

The security breach, which was discovered by Galaxy Research, resulted in an estimated $88.6 million loss from 4,585 addresses across three suspected attack waves.

Balchunas noted that the incident highlights the risks associated with self-custody and argued that investors should consider using a regulated ETF, such as the iShares Bitcoin Trust ETF (IBIT), which is managed by Coinbase Custody and Anchorage Digital Bank.

He emphasized that an ETF provides a safer option for investors who only want to track the price of Bitcoin without taking on the risk of seed management, firmware updates, backups, and wallet migration.