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.
Bloomberg’s senior ETF analyst Eric Balchunas says that since the weekend, BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Original Bitcoin Fund, Bitwise Bitcoin ETF, ARK 21Shares Bitcoin ETF, ARKB, and Defiance Daily 2x Long MSTR ETF, MSBT, have all seen inflows of approximately $620m. The total figure remains consistent. Cointelegraph’s recent reporting On the ETF Inflow Streak
It is important to note that the word “you” means a person. Coldcard exploit More than $5,200 Bitcoin addresses were compromised. according TRM Labs is a Blockchain intelligence firm.
“I’m not saying it’s connected, we just don’t know,” Balchunas wrote in a tweet on X. “[Although] long-term I can’t imagine there aren’t some who migrate over.”
Source: Eric Balchunas
Related: Bitcoin Red Team reports 5K findings in sweeping security audit
Coldcard exploit renews debate over self-custody risks
Coldcard’s hack has raised concerns about the vulnerability of firmware and software to flaws. It also highlights operational risks associated with self-custody.
This incident reignited the debate on whether it is better to hold Bitcoins directly or gain exposure via regulated products like spot Bitcoin ETFs where assets are held and secured by institutions.
Binance founder Changpeng “CZ” Zhao also added his voice to the discussion, saying that crypto storage on central exchanges is now a risky proposition. “statistically safer” Data from Willy Woo, an analyst, shows that Bitcoin losses due to self-custody have exceeded those from hacking of exchanges.
Source: Changpeng Zhao
“Hack data is easier to collect on the CEX side, usually major news. It is harder on the self-custody side, where hacks, lost coins, etc are often not reported,” CZ says.
AI-assisted attacks are getting more sophisticated. On Monday, Bitcoin swap service Boltz suspended its non-custodial bridgeThe company cited a constant rise in AI exploits, which allowed attackers to find and exploit weaknesses faster than their team could fix them.
Magazine: Do the Coldcard attacks mean all hardware wallets are now insecure?
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Source: cointelegraph.com
