Bitcoin ETFs See Massive $1 Billion Inflow After Wallet Hack

US spot Bitcoin exchange traded funds brought in roughly one billion dollars in net inflows this past week. This performance marks the best weekly result for these funds since April and the third highest total since October. Major funds like IBIT and FBTC recorded daily inflows consistently throughout the period.

This spike in buying activity occurred shortly after a significant security breach involving Coldcard hardware wallets. Attackers exploited a firmware flaw to drain over 1,800 Bitcoin from more than 5,000 addresses. While the theft caused initial concern for self custody users, the market reaction appears to be a flight toward the regulated security offered by major ETF providers.

Analysts note that the current market phase follows a long period where early Bitcoin holders sold off large amounts of their supply to exit positions. This exit was often described as a silent IPO, where long term investors finally took profits after years of holding.

Investors are now watching to see if this trend continues or if the market cools down. While the irony of a cold storage hack triggering a surge in ETF demand is notable, the recent data shows that institutional interest in Bitcoin remains strong despite security challenges in the broader sector.