Coldcard Hack Fuels Bitcoin ETF Surge
Coinkite's Coldcard wallet has been hacked, resulting in $130 million worth of customers' Bitcoin being stolen. This incident has led to a significant increase in money flowing into Bitcoin spot exchange-traded funds (ETFs), with $382 million in combined inflows registered on August 3 and 4.
The hack targeted certain wallets that used a flawed true random number generator, making it easier for hackers to exploit the flaw and steal funds. However, the underlying Bitcoin blockchain itself was not hacked and continues to operate as usual.
Investors are turning to large financial services businesses with their capital, rather than relying on self-custody solutions like Coldcard. The largest and best-known Bitcoin spot ETFs, such as the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund, are likely to continue benefiting from this trend.