Bitcoin ETF Inflows Rise After Coldcard Hack: Bloomberg ETF Analyst
Wall Street analysts said the breach could push users toward managed custody and spot bitcoin ETFs as 1,816 bitcoin were drained.
- A firmware flaw in Coldcard hardware wallets has drained at least 1,816 Bitcoin, worth about $114 million, from more than 5,200 addresses since July 30, according to researchers.
- Galaxy Research estimates the attack may have affected as many as 7,300 addresses, resulting in about $130 million in suspected losses, underscoring significant risks for self-custody users holding their own private keys.
- In a Wednesday report, FRNT Financial wrote that "the reaction within the BTC community to the exploit was one of heartbreak," noting many affected users had followed long-standing best practices around self-custody.
- Spot Bitcoin ETFs attracted $382 million in two-day inflows as investors reconsidered custody risks. Bloomberg Intelligence analyst Balchunas wrote that institutional safeguards might "all the sudden seem like a feature" compared to self-custody.
- Analysts expect the breach to drive users toward managed custody providers including Coinbase Global, Robinhood Markets, and BitGo Holdings. Digital asset specialist Nico Pasquariello said token flows to custodians and exchanges will likely increase following the hack.
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The Coldcard hack was not a classic attack on Bitcoin. It was the unmasking of an illusion — and it hit those who thought they had done everything right.
Bitcoin ETF Inflows Rise After Coldcard Hack: Bloomberg ETF Analyst
Demand for US spot Bitcoin exchange-traded funds (ETFs) has accelerated over the past week, with a string of daily inflows coinciding with the Coldcard wallet hack — timing that has prompted speculation about whether some investors are reconsidering self-custody. According to Bloomberg senior ETF analyst Eric Balchunas, BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), ARK 21Shares Bi…
Bitcoin ETF Inflows Rise as Coldcard Hack Fuels Custody Debate
Key Insights Bloomberg analyst Eric Balchunas linked recent Bitcoin ETF inflows to the Coldcard wallet exploit. Balchunas previously argued that security concerns could push some Bitcoin holders toward crypto ETFs. Coldcard losses reportedly surpassed $100 million as investigators tracked funds linked to the attacks. U.S. spot Bitcoin exchange-traded funds recorded about $620 million in inflows following the Coldcard hardware-wallet exploit, ac…
Coinkite declines to estimate Bitcoin loss from $130M Coldcard hack
The Coldcard hack highlights the urgent need for regulatory standards in hardware wallet security to protect investors and maintain trust. The post Coinkite declines to estimate Bitcoin loss from $130M Coldcard hack appeared first on Crypto Briefing.
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