Coldcard Hack Triggers $620M Bitcoin ETF Inflows on Wall Street

A high-profile security breach affecting Coldcard wallets has triggered an accelerated shift of funds from self-custody to Wall Street institutions.

Over just a few days, spot Bitcoin exchange-traded funds (ETFs) in the United States have seen net inflows totaling $620 million as investors move to regulated structures for protection.

The security flaw traces back to a 2021 firmware update from CoinKite, a Canadian hardware wallet manufacturer, which led to predictable seed phrases being generated based on serial numbers, undermining wallet security.

This vulnerability enabled hackers to mathematically reconstruct private keys and remotely siphon funds from thousands of wallets, resulting in total losses surpassing $116 million, with approximately 1,800 BTC stolen from investors.