Spot Bitcoin ETFs post three straight green days as weekly inflows hit $626M
US spot Bitcoin ETFs recorded $626 million in net inflows over three consecutive sessions, led by BlackRock's $IBIT. The Coldcard hardware wallet exploit has reignited the self-custody versus institutional custody debate, with Bloomberg's Eric Balchunas suggesting ETFs may benefit.
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Three Straight Days of Inflows
US spot Bitcoin ETFs have opened August on firm footing. The funds recorded $244.4 million in net inflows on Wednesday, extending a three-day inflow streak that totalled $626 million, according to SoSoValue data. BlackRock's $IBIT was the dominant force. The fund attracted $479 million across the three sessions, pushing its cumulative net inflows to nearly $61 billion, according to Farside Investors data.
Total assets across US spot Bitcoin ETF products climbed to $79.21 billion, representing roughly 6.09% of Bitcoin's market cap. The run is a notable shift for a product category that spent most of the summer bleeding. Tuesday's session alone brought $211.5 million in net inflows, with $IBIT capturing $170.3 million, FBTC $19.6 million, ARKB $9.2 million, BITB $8.7 million and MSBT $3.7 million.
Coldcard Exploit Reignites the Custody Debate
The inflow run has coincided with fresh scrutiny over Bitcoin self-custody following the Coldcard hardware wallet exploit. Galaxy Research identified 1,596 Bitcoin stolen from more than 7,300 addresses across three confirmed attack waves linked to flawed seed generation on multiple Coldcard models. Including a suspected fourth wave, total losses could reach 2,055 Bitcoin, worth roughly $130 million at current prices.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said the Coldcard hack could encourage greater migration toward Bitcoin ETFs as investors reconsider the role of institutional custody. He said ETFs' reliance on traditional financial institutions to safeguard assets could increasingly be seen as an advantage. Balchunas said that arrangement may now appear more attractive when compared with relying on a small hardware wallet manufacturer, noting that ETF issuers and their custodians are large financial institutions with decades of experience safeguarding client assets.
That said, causality remains unclear. Balchunas himself has acknowledged that the inflows may have nothing to do with the hack, and the debate cuts both ways. One camp treats the exploit as evidence that self-managed keys are too risky for the average investor, while the other argues that a single firmware error at one manufacturer does not invalidate Bitcoin's founding premise as bearer property. ETF investors lose direct Bitcoin ownership and network access, making ETFs suitable mainly for those focused on price exposure rather than usage.
Sources:
CoinTelegraph: Bitcoin ETFs Reach $626M in 3-Day Inflows
Benzinga: Could the Coldcard Hack Drive Investors Into Spot Bitcoin ETFs?
CryptoSlate: Coldcard's $130 Million Crisis and Bitcoin ETF Custody Debate
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Crypto RichRich has been researching cryptocurrency and blockchain technology for eight years and has served as a senior analyst at BSCN since its founding in 2020. He focuses on fundamental analysis of early-stage crypto projects and tokens and has published in-depth research reports on over 200 emerging protocols. Rich also writes about broader technology and scientific trends and maintains active involvement in the crypto community through X/Twitter Spaces, and leading industry events.