Bitcoin ETF Inflows Jump After $130M Coldcard Hack

Bitcoin spot ETFs in the United States recorded a massive $626 million in fresh inflows following news of a major hack involving Coldcard hardware wallets. Investors appear to be seeking the security of established financial institutions after reports confirmed that a software vulnerability led to the loss of over $130 million in Bitcoin.

The breach, which stemmed from a firmware flaw dating back to 2021, allowed attackers to guess private keys and drain funds. As users scramble to protect their assets, market data shows that many are opting to park their capital in ETFs managed by major firms like BlackRock and Fidelity rather than managing private keys themselves.

Industry analysts note that this movement highlights a shift in investor sentiment regarding self custody. While many crypto enthusiasts value the independence of hardware wallets, the recent incident has pushed risk averse participants toward the institutional oversight provided by Wall Street giants.

Moving forward, traders should watch whether these ETF inflows continue to grow as security concerns persist in the broader market. With top fund managers now overseeing nearly $78 billion in assets, the role of institutional products in the Bitcoin ecosystem is clearly expanding as users trade autonomy for peace of mind.