ETF Inflows Surge After Coldcard Hack Drains Over $130M in Bitcoin

Bitcoin exchange-traded funds (ETFs) have seen significant inflows in recent days, drawing over $850 million last week. According to Bloomberg News, this is the highest level of investment since April. The surge in interest follows a high-profile crypto hack involving Coldcard wallets made by Coinkite that drained about $130 million in Bitcoin.

Analysts believe investors may be seeking shelter in regulated ETFs after the breach, which compromised one of the safest methods of digital asset storage. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, stated that 'the Coldcard hack could make spot Bitcoin ETFs a more appealing option for some investors.'

However, Balchunas also noted that investing in ETFs does not eliminate security risks, as a fund's cryptocurrency custodian could still be breached. He warned that there is no guarantee against losses if an ETF custodian were compromised.