Coldcard exploit fails to deter $800M Bitcoin ETF inflows

U.S. spot Bitcoin exchange-traded funds pulled in nearly $800 million over the past seven days, even as a major security flaw in Coldcard hardware wallets stoked fresh fears about self-custody risks.

The timing is striking. Last week, researchers revealed a firmware exploit in certain Coldcard devices that could let an attacker extract private keys if they gained brief physical access. The flaw affects only a small number of older models, but it reignited debates about whether users should trust hardware wallets at all. Meanwhile, nine U.S.-listed Bitcoin ETFs added $790.6 million in net new assets between June 10 and June 16, according to data from Farside Investors.

The inflows show investors are still eager for regulated, easy-to-use Bitcoin exposure, even when security scares make headlines. BlackRock’s IBIT led the pack with $473 million, followed by Fidelity’s FBTC at $197 million. Smaller ETFs like Bitwise’s IBIT and VanEck’s HODL also saw strong demand. The total now puts spot Bitcoin ETFs above $67 billion in assets under management since launch.

What happens next could hinge on whether the Coldcard issue spreads or gets patched quickly. If regulators or big custodians signal stricter wallet rules, some investors might shift more cash into ETFs for peace of mind. Either way, the $800 million inflow proves Bitcoin’s mainstream pull is still strong, flaws and all.