Coldcard Hack Sparks Bitcoin ETF Inflows Amid Custody Debate

US-listed spot Bitcoin exchange-traded funds (ETFs) have seen significant inflows as concerns over digital asset security continue to rise following a high-profile Coldcard hack.

The hack, which is estimated to have affected up to 7,300 addresses and resulted in around $130 million in suspected losses, has reignited the debate over whether institutional custody solutions offered through regulated financial products could become more attractive for investors.

Spot Bitcoin ETFs recorded $211.5 million in net inflows on Tuesday, adding to Monday's $170 million, according to data from SoSoValue.

The Galaxy Research team has been tracking the Coldcard incident and estimates that it may have resulted in about 3.9% of Invesco Galaxy Bitcoin ETF (BTCO)'s cumulative net inflows of $172 million.