US-listed Bitcoin spot exchange-traded fund (ETFs), which are now attracting new capital, have been boosted by a recent high-profile incident involving cryptocurrency security.
On Tuesday, Spot Bitcoin ETFs saw net inflows of $211.5 millions, up from $170 million on Monday. according SoSoValue data.
Inflows of migrants came in as the ongoing Coldcard hack Galaxy Research attracted analysts’ attention estimating Users of the hardware wallet may have lost up to $130 million as a result of this attack, which could affect as many 7,300 accounts.
These developments have reignited a debate that has been ongoing in the crypto world about whether or not institutional custody products offered via regulated financial instruments could be more appealing as investors consider risks and responsibilities associated with self-custody.
Galaxy ETF receives inflows from Bitcoin funds
BlackRock’s iShares Bitcoin Trust, or IBIT, led the ETF recovery on both Monday and Tuesday with inflows of $111 million. according Farside Investors Data Fidelity Wise Origin Bitcoin Funds added about $30 million and around $20 million respectively on those days.
Invesco Galaxy Bitcoin ETF BTCO (BTCO), which has been a positive performer since 1 July, recorded Inflows totaling $6.7M on Monday. According to Farside, the inflow represents about 3.9% of BTCO’s cumulative net inflows totaling $172 million.
Source: Galaxy Research
Galaxy Research is the crypto-investment company Galaxy Digital’s research division. It has been one of the leading sources in tracking the Coldcard scandal. Alex Thorn is the head of Galaxy Digital’s firmwide research. His team has regularly published The estimated number of addresses affected and the potential damage caused by this incident.
A coldcard attack gives new life to Bitcoin ETF’s custody arguments
Eric Balchunas is a senior ETF analyst with Bloomberg Intelligence. He said that the Coldcard Hack could lead to a greater movement towards Bitcoin ETFs as investors re-evaluate the role of institution custody.
Balchunas published a message on their Facebook page Tuesday. said ETFs relying on traditional institutions to protect assets may be increasingly seen in a positive light. The author wrote that what used to be considered an “bug” Crypto users are a minority. “all the sudden seem like a feature” As investors compare smaller crypto companies with institutional custodians.
Related: Boltz pauses service after wave of AI-assisted hacking attempts
Balchunas pointed out that there are also broader changes taking place in the ETF industry, such as the closure of Hashdex’s spot Bitcoin ETF BlackRock planned Reverse split of its Ethereum ETF
BTC remains steady as traders consider custody concerns
Bitcoin’s price remained fairly stable after traders assessed Coldcard and other factors, such as the latest selling pressure. 1,638 BTC sale Michael Saylor Strategy
BTC was trading at $64,113 as of the time this article went to press, a decrease of around 0.8% in seven days. according CoinGecko is a great way to get started. The asset’s low price fell below $62,500.
Source: Bitcoin Munger
The Observer argued The public tracking of Bitcoin transactions may make it difficult for those responsible for the Coldcard scandal to move or convert the funds. Shagun the crypto-commentator wrote on Sunday in an X message that big fund moves would be scrutinized by blockchain researchers, exchanges, and other participants.
Magazine: Sorry everyone, Bitcoin is headed down to $43,500: Michael Terpin
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Source: cointelegraph.com
