Bitcoin ETFs Pull In $850M After Major Wallet Hack

US Bitcoin exchange traded funds brought in $850 million last week, marking the strongest weekly inflow since April. This massive capital surge followed a major security incident involving Coinkite and its popular Coldcard wallet product. Hackers managed to exploit a software vulnerability, leading to estimated losses of over $130 million in Bitcoin and rattling a community that normally swears by cold storage.

BlackRock executive Robert Mitchnick noted on Bloomberg that investors are increasingly turning to trusted funds to avoid the tricky security requirements of self custody. He pointed out that the wallet breach was an individual provider issue rather than any flaw in the Bitcoin protocol itself. While experts cannot confirm if users are actively moving funds out of cold storage and into exchange traded products, the resulting trading volume speaks for itself.

Major funds managed by BlackRock, Fidelity, and Morgan Stanley all captured strong activity during the recent market downturn. Despite the heavy inflows, Bitcoin prices remained flat around $63,861 over the seven day period. Traders will now watch closely to see if this shift toward Wall Street custody products becomes a lasting trend.