U.S. spot Bitcoin exchange-traded funds (ETFs) continued to draw strong investor demand this week, recording more than $381 million in net inflows over two trading sessions as concerns over cryptocurrency security resurfaced following the Coldcard hack.
According to SoSoValue, spot Bitcoin ETFs attracted $170 million in net inflows on Monday, followed by another $211.5 million on Tuesday. The fresh capital arrived as analysts assessed the impact of the Coldcard incident, which Galaxy Research estimates may have affected up to 7,300 Bitcoin addresses, with suspected losses totaling roughly $130 million.
The event has reignited discussion over whether regulated ETF custody offers a safer alternative to managing digital assets independently.
BlackRock Leads Bitcoin ETF Inflows
BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the largest share of new investments, pulling in $111 million on Monday before adding another $170 million on Tuesday, according to Farside Investors.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) also maintained positive momentum, attracting approximately $33 million on Monday and around $20 million the following day.
Meanwhile, the Invesco Galaxy Bitcoin ETF (BTCO) posted $6.7 million in inflows on Monday. The gain marked the fund’s first positive daily flow since early July and represented nearly 4% of its cumulative net inflows to date.
Coldcard Incident Renews Focus on Crypto Custody
The recent Coldcard security incident has become a focal point for investors evaluating how best to store digital assets.
Galaxy Research has closely monitored the event, estimating that thousands of Bitcoin addresses may have been compromised. The research team believes suspected losses could total approximately $130 million, although investigations remain ongoing.
Bloomberg Intelligence ETF analyst Eric Balchunas said the incident may strengthen the appeal of Bitcoin ETFs. He noted that institutional custody—once criticized by some crypto enthusiasts—could increasingly be viewed as an advantage as investors compare traditional financial custodians with self-managed wallets or smaller crypto service providers.
The debate highlights a longstanding divide within the crypto industry between self-custody, which offers complete control over assets, and institutional custody, which shifts security responsibilities to regulated financial firms.
Bitcoin Holds Steady Despite Market Pressure
Despite the security concerns, Bitcoin’s price remained relatively stable. At the time of writing, BTC traded near $64,113, down about 0.8% over the previous week after briefly falling below $62,500.
Market participants were also digesting additional selling pressure, including Strategy’s latest sale of 1,638 BTC.
Some blockchain analysts believe moving the allegedly stolen Bitcoin may prove difficult because transactions remain publicly traceable, allowing researchers, exchanges, and compliance teams to monitor suspicious activity.
Conclusion
The combination of renewed ETF inflows and the Coldcard hack has shifted attention back to one of crypto’s most important questions: how digital assets should be secured. While many investors continue to value self-custody, recent events may encourage others to favor regulated Bitcoin ETFs that provide institutional-grade custody alongside traditional investment access.
