Coldcard Hack Spurs $850M Inflow into Bitcoin ETFs

A Hack That Pushed Money In

Cold wallets are supposed to be the safest way to hold crypto. They are offline devices built to keep digital assets out of reach of online attackers.

But a flaw in Coinkite's firmware let attackers seize control without ever touching the physical units. The wallet's security was weaker than it looked.

Coinkite said it is "heads down helping affected customers."

The hack hit at the heart of crypto's promise. The whole point of a cold wallet is that your coins stay safe because the keys never touch the internet.

When that promise breaks, investors start looking for other options.

The incident serves as a reminder that even hardware wallets are not immune to sophisticated attacks.

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Investors Moved Anyway

The timing stands out. Since June, Bitcoin has mostly stayed between $60,000 and $67,000, leaving it worth roughly half its October peak.

On Monday, Bitcoin fell nearly 2% to $63,860.

Despite the hack, money kept flowing in. That is striking because the inflows happened without any major price rally behind them.

The demand suggests investors are moving their digital assets out of personal control and into institutional vehicles, according to Rajiv Sawhney of Wave Digital Assets. He called it "the marginal coin migrating from self-custody into institutional wrappers."