Coldcard Security Breach Triggers Massive Bitcoin ETF Influx

A sudden influx of $620 million into spot Bitcoin ETFs followed a security issue with Coldcard, a company that provides hardware wallets for storing cryptocurrencies. The incident occurred within a few days and resulted in the loss of approximately 1,800 BTC, valued at around $64,559 each, totaling over $116 million in damages.

Investors seem to have shifted their focus from individual cold storage solutions like Coldcard to larger custody institutions for storing Bitcoin. The security breach was attributed to a technical vulnerability in the product's software update released in 2021, which allowed predictable seed phrase production.