Coldcard Hack Sparks $850M Inflow into Bitcoin ETFs
A recent hack on Coinkite's Coldcard wallets has led to an influx of $850M into Bitcoin ETFs, despite a lack of price rally. The incident exposed a vulnerability in the wallet's firmware that allowed attackers to seize control without touching the physical units.
The hack raises concerns about the security of even hardware wallets, which are designed to keep digital assets offline and protected from online attacks.
According to Rajiv Sawhney of Wave Digital Assets, the demand for institutional vehicles suggests investors are moving their digital assets out of personal control and into regulated wrappers.
Eric Balchunas of Bloomberg Intelligence notes that the Coldcard incident may have made spot Bitcoin ETFs more appealing to some investors, including long-time holders.