Bitcoin ETF inflows hit $382 million in just two days. Galaxy’s ETF returned to gains on Tuesday.
The Coldcard incident renewed custody concerns. This drove fresh capital into regulated products.
Why Bitcoin ETF inflows are rising now
Spot Bitcoin ETFs recorded $211.5 million in net inflows on Tuesday. Monday saw $170 million in inflows. This comes as the ongoing Coldcard hack draws attention.
Galaxy Research estimates the attack affected 7,300 addresses. Suspected Bitcoin losses total about $130 million. The incident renewed the self-custody versus institutional debate.
Galaxy ETF returns to inflows
BlackRock’s iShares Bitcoin Trust led the recovery. IBIT recorded $111 million in inflows on Monday. It added $170 million on Tuesday.
Fidelity’s FBTC followed with about $33 million. It added roughly $20 million the next day. Invesco Galaxy Bitcoin ETF recorded $6.7 million on Monday. This was its first positive flow since July 1.
Coldcard hack gives weight to custody argument
Eric Balchunas said the hack could encourage ETF migration. Investors are reconsidering institutional custody’s role.
“What was once a bug may seem like a feature,” Balchunas wrote. ETFs rely on traditional financial institutions for safekeeping.
Balchunas also noted broader ETF market changes. Hashdex’s spot Bitcoin ETF is closing. BlackRock plans a reverse split for its Ethereum ETF.
BTC steady as traders weigh concerns
Bitcoin remained relatively stable. Traders assessed the Coldcard incident and Strategy’s sale. Strategy sold 1,638 BTC for $104.7 million last week.
BTC traded at $64,007 at publishing time. It is down around 0.9% over seven days. The lowest price during that period fell below $62,500.
Some observers argued attackers face challenges moving funds. Bitcoin transactions are publicly trackable. Large movements would attract scrutiny from exchanges and researchers.