Coldcard Hack Fuels Bitcoin ETF Inflows Amid Security Concerns

The recent Coldcard wallet exploit has led to increased inflows into Bitcoin ETFs, according to Bloomberg Senior ETF Analyst Eric Balchunas. The incident saw losses reportedly surpass $100 million as investigators tracked funds linked to the attacks.

Following the exploit, U.S. spot Bitcoin exchange-traded funds recorded around $620 million in inflows, a figure that could be connected to security concerns driving some investors toward institutional custody.

Balchunas previously argued that the security incident could encourage some Bitcoin holders to reconsider self-custody and opt for crypto ETFs instead.