TL;DR
Bitcoin ETFs continued to attract fresh capital this week as a high-profile Coldcard hack reignited discussion around digital asset security. The renewed attention on custody risks arrived alongside another strong day of inflows, reinforcing the idea that institutional products remain a preferred entry point for many investors navigating uncertain market conditions.
Spot Bitcoin ETFs posted $211.5 million in net inflows on Tuesday, extending Monday’s $170 million. The surge coincided with growing scrutiny of the Coldcard incident, which Galaxy Research estimates may have affected roughly 7,300 addresses. It resulted in about $130 million in suspected Bitcoin losses. Analysts noted that the episode has revived long-standing questions about whether regulated institutional custody offers a safer alternative to self-managed storage.
BlackRock’s IBIT led the recovery, adding $111 million on Monday and $170 million on Tuesday. Fidelity’s FBTC followed with inflows of about $33 million and $20 million across the two sessions. Invesco Galaxy’s BTCO also returned to positive territory, recording $6.7 million on Monday, its first inflow since July 1. Galaxy Research’s team, including Alex Thorn, has been one of the most active groups tracking the Coldcard situation and publishing ongoing estimates.
Bloomberg Intelligence analyst Eric Balchunas said the hack may accelerate migration toward Bitcoin ETFs as investors reassess the trade-offs between institutional custodians and smaller crypto companies. He noted that features once viewed skeptically could now be seen as advantages.
Balchunas also highlighted structural changes in the ETF landscape, including Hashdex’s spot Bitcoin ETF closure and BlackRock’s planned reverse split for its Ethereum ETF. Meanwhile, Bitcoin traded around $64,113 at publishing time, down roughly 0.8% over the past week, with its lowest level dipping below $62,500.
Observers added that those behind the Coldcard incident may struggle to move or convert funds due to Bitcoin’s transparent ledger. Crypto commentator Shagun argued that large transfers would likely draw attention from exchanges, researchers and other market participants.
Spot ETH ETFs recorded $53.1 million in net inflows, led by BlackRock’s ETHA with $42.5 million. Fidelity’s FETH added $9.3 million, while Bitwise’s ETHW brought in $1.3 million. In contrast, Solana, Hyperliquid and XRP ETFs saw no net flows, underscoring that institutional interest remains concentrated on BTC and ETH despite broader market caution.
