ETF Flows Surge Amid Bitcoin Security Concerns

A recent firmware exploit affecting certain Coldcard hardware wallets led to a surge in institutional demand for Bitcoin, despite security concerns. During the same period, U.S. spot Bitcoin ETFs attracted nearly $800 million in net inflows.

According to the Bitcoin For Corporations ETF Dashboard, over the seven trading days following the exploit, $1 billion entered the funds while $212.7 million exited, resulting in one of the strongest weekly periods in recent months.

The data shows that institutional capital continued flowing into regulated Bitcoin investment products, even during a week dominated by security headlines. BlackRock's IBIT accounted for the majority of inflows, adding $757.5 million over the seven-day period.