Bitcoin ETF Inflows Surge Following $130M Coldcard Hack

[Oshosondy]

This has been the news that I am seeing online.

Bitcoin ETF Inflows Surge Following $130M Coldcard Hack

We saw bitcoin decreased, but just a little and it rose back just a little. But why are the news thinking the recent bitcoin ETF inflow could be as a result of the Coldcard hack?

I know some people might sell their bitcoin and buy the shares of the ETFs instead, but what do you think is caused the inflow?

Major U.S. funds managed by BlackRock, Fidelity, Grayscale, Morgan Stanley and others have received a total of $626 million in fresh cash following news of the hack on Friday, according to data from Farside Investors.

Some people are now afraid of self-custody.

[Ambatman]

These news outlets just needs clickbait
They know what would draw attentions
Even if you don't agree with them you still had to check it out.
That's the essence.
Inflows are normal when the market is performing relatively better.

[Merit.s]

It's normal as humans to always look for a better way to secure our funds if the one we think is good enough gives us doubt. Maybe, people have begin to think that Bitcoin ETF is safer since, you have who to hold if anything happens to your funds. No more trust on exchanges anymore because if they get hacked, your funds are gone.

But if it's true that it's because of the Coldcard hack, then these investors forget that they're not real bitcoin owners but part of the company shares. I will still prefer to be in self custody of my bitcoin. Investors should only learn to add passphrase to their seed phrase making it difficult to compromise their wallets.

[Smack That Ace]

You may have confused correlation with causation.

It is not logical to assume that inflow into ETF after Coldcard hack means that people are abandoning self custody and buying ETFs.

ETF flows change every day for variety of reasons. We saw large inflow due to institutional asset allocation, macro sentiment, treasury management, arbitrage and even basis trade. So, if two event happen at same time, it is not right to assume that one caused for other.

If a bank vault has a flaw, would you say the fiat system has failed?
Similarly, it is unreasonable to call self-custody a failure based on an implementation bug in a hardware wallet. But yes, if some new users choose ETFs out of fear, that is possible. But it is not right to think that the entire $626 million inflow is the result of that fear.

[EL MOHA]

These news outlets just needs clickbait
They know what would draw attentions
Even if you don't agree with them you still had to check it out.
That's the essence.
Inflows are normal when the market is performing relatively better.

Exactly this is simply for clickbait, I know it’s news like this that will be carried right now by them because they know it’s what the people wishes to look into. After the last dump of bitcoin to below $60000 in the early days of the month of July. The recovery has long been said to be followed up by inflows of ETF, so i don’t understand what the recent news is all about. Some ETF institutions already had made it clear that they are accumulating aggressively at this period and this was even before the coldcard saga.

But regardless if there is an inflows into ETF, let’s agree that it’s because of coldcard saga, then it’s normal it’s just the usual FOMO that some investors usually experience, if crisis hits custodial platforms they move to non custodial and then repeat same if places are switched. So it’s nothing new

[promise444c5]

Could just be new  inflow as usual(not the usual  btw) Or it’s just another anti self-custody strategy.. they don’t have to say it , just pick a perfect timing and let the internet do its normal job at confusing people..

I’ve seen more than 3 news outlet  before this specific post and they all have one thing in common “cold card hack “ .. so annoying   .

[BALIK]

From what I've seen, about 90% of that $626 million in fresh ETF inflows came from institutional investors. Like, hedge funds, asset managers, pension funds and high-net-worth accounts. Institutional demand has remained the primary driver of recent spot Bitcoin ETF inflows.

Do you know who typically uses Coldcard?
They're mostly hardcore cypherpunks and longterm HODLer who prefer Bitcoin self custody.
They're not the kind of people who would panic over a security flaw, dump their on chain BTC overnight, and switch to centralized ETF share.

I think the main reason behind this huge inflow of institutional funds was macroeconomic factors, such as the rumor of interest rate cuts and the increase in global liquidity. Not the Coldcard security issue. I don't see any meaningful connection between the two.

[PrivacyG]

Some people are now afraid of self-custody.

If that is the case then I have the belief that most of these people never actually trusted their own actions enough to not be afraid of it.  However.  It makes self custody a lot easier to digest when you rely on Third Party hardware and firmware 'doing most of the work for you'.  I could bet a lot more people would have purchased ETFs if they had to set up Airgapped Computers and multi sigs.  People are still running away from responsibility.  Even most Bitcoiners.

A decentralized piece of code no one can change particularly in your favor means things like this can happen.  Particularly when you self custody your Bitcoin and every mistake is your self to blame and irreversible.

[Joy_learns_crypto]

This has been the news that I am seeing online.

Bitcoin ETF Inflows Surge Following $130M Coldcard Hack

We saw bitcoin decreased, but just a little and it rose back just a little. But why are the news thinking the recent bitcoin ETF inflow could be as a result of the Coldcard hack?

I know some people might sell their bitcoin and buy the shares of the ETFs instead, but what do you think is caused the inflow?

Major U.S. funds managed by BlackRock, Fidelity, Grayscale, Morgan Stanley and others have received a total of $626 million in fresh cash following news of the hack on Friday, according to data from Farside Investors.

Some people are now afraid of self-custody.

The cause of the inflow Not the Coldcard hack but if the coldcard hack news keep marinating at this level it is doing now I see it causing an inflow that is bigger and more stable than this.
But my question is after the Coldcard hack what makes buying Shares of the ETFs the strongest safe alternative that has see these companies get a huge fresh cash inflow.

[Alphakilo]

This has been the news that I am seeing online.

Bitcoin ETF Inflows Surge Following $130M Coldcard Hack

We saw bitcoin decreased, but just a little and it rose back just a little. But why are the news thinking the recent bitcoin ETF inflow could be as a result of the Coldcard hack?

I know some people might sell their bitcoin and buy the shares of the ETFs instead, but what do you think is caused the inflow?

Major U.S. funds managed by BlackRock, Fidelity, Grayscale, Morgan Stanley and others have received a total of $626 million in fresh cash following news of the hack on Friday, according to data from Farside Investors.

Some people are now afraid of self-custody.

Investors are literally afraid of anything when it comes to the security and safety of their investment and this case of coldcard isn't any different as a cause for panic and fear. I was also thinking this hack could have been a way to shift the narrative from self custody to spot ETF which is more regulated and controlled and monitored and is similar to a traditional bank in a way because you have to entrust the company to keep your funds instead of you doing it yourself.
I won't blame those who now see and are rushing into spot ETF as a better option, but the thing is that spot ETF is for big pockets and institutional holders. I wonder the cost it would be for small retail holders.

[salad daging]

These news outlets just needs clickbait
They know what would draw attentions
Even if you don't agree with them you still had to check it out.
That's the essence.
Inflows are normal when the market is performing relatively better.

Hahaha media utilizes clickbait in order for many people to click the article, if the media does not do that they will not get high traffic.
Bloomberg senior ETF analyst-said in the article, the flow of funds into the ETF is likely not from the ColdCard hack, which means the inflow into the ETF with large funds could be a large institution.
This kind of news often makes us think at the beginning that they no longer believe in self-custody, as if it were the wrong way.

[macson]

The author wrote a news headline that seemed so convincing, but at the bottom they asked whether that inflow was related to the Coldcard exploit. What a trashy article.

Inflows into the Bitcoin market are normal. They can be triggered by many factors, such as market sentiment, changes in demand, and various other things.

So that author is just linking unrelated events together just to create a trashy article. This is why I rarely read crypto news portals these days, because most of the content is just clickbait.

[BitMaxz]

We saw bitcoin decreased, but just a little and it rose back just a little. But why are the news thinking the recent bitcoin ETF inflow could be as a result of the Coldcard hack?

I think they're just thinking that most of the ColdCard users, instead of moving the funds to a new wallet or sending them to an exchange they look for a much safer and legal way to save their holdings then ETFs are their best choice since ETFs strictly follow laws from the SEC.
But we don't have proof about that if those coldcard users move their funds to ETF, it's just an assumption.

I know some people might sell their bitcoin and buy the shares of the ETFs instead, but what do you think is caused the inflow?

Like I said, there's no proof that it came from ColdCard users who just moved their funds to ETF.
ETFs don't publicly disclose where their inflows come from, even revealing the identity of any retail investors. Everything are private and it's individual privacy.

For me, those inflows are just normal; we see them pumping daily, but compared to volume, they are still low vs. high outflows on the recent days.

[X-ray]

The article is trying to frame the $130M inflow was due to Coldcard incident, yet Eric Balchunas, the man whose tweet cited on the article is saying "I'm not saying it's connected", make it make sense.

Jul 10 to Jul 20 according to the graph shared by Eric Balchunas have bigger inflow, yet there was no hardware wallet hacking incident.

This is clearly framing Bitcoin's bullishness on something that could be completely unrelated.

I think instead it goes to show that the market understand the Coldcard have nothing to do with bitcoin and purely the mistake of Coldcard bug ridden hardware wallet isn't it?

[PostQuantumBTC]

These news outlets just needs clickbait
They know what would draw attentions
Even if you don't agree with them you still had to check it out.
That's the essence.
Inflows are normal when the market is performing relatively better.

You do not understand what is happening, it was Bloomberg that originally published it, but other other news also make it a news. They noticed that the ETF inflow is more than usual. The time the Coldcard vulnerability occurred and now, bitcoin almost have the same price or the price at that time is slightly more than now, but the inflow of the ETFs increased. Bloomberg have good analysts, also this is a fact that can be seen if you make your own analysis about it.

[hosemary]

The article is trying to spread misleading information and make readers believe that Bitcoin inverstors are going to prefer ETFs over self-custody.
It says "Major U.S. funds managed by BlackRock, Fidelity, Grayscale, Morgan Stanley and others have received a total of $626 million in fresh cash following news of the hack on Friday, according to data from Farside Investors."

The incident didn't start on Friday. It started on July 30, which was Thursday.
According to Coinmarketcap, Bitcoin ETFs saw a $265 million in outflows on Friday. The article says that the Coldcard Hack occured on Friday, so that they can exclude the Friday's Bitcoin ETF outflow from their figures.
Therefore, the total netflow Bitcoin ETFs have seen since ColdCard's hack is around $360 million, not $626 million.


Source: Coinmarketcap


I also believe that the Bitcoin ETF's inflow from Monday to Thursday is unrelated to what happened with Coldcard wallets.
According to CryptoQuant, around 3900 BTC have left exchanges during the same period. This indicates that people have probably been trying to accumulate more Bitcoin in the past few days, and that's why Bitcoin ETFs also had postive netflows.



Source: CryptoQuant

[pooya87]

We saw bitcoin decreased, but just a little and it rose back just a little. But why are the news thinking the recent bitcoin ETF inflow could be as a result of the Coldcard hack?

All 3 are irrelevant events.
The ups and downs are the normal fluctuations that we have been experiencing in the market for a while now since we are in a sideways market and possibly in an accumulation phase. So unless price breaks above a major resistance or breaks down below a major support, we cannot call it a significant ups and down that requires an analysis to find the related reasons for it.

The ETF thing is similar as well. I doubt it has anything to do with people being afraid of self-custody. In my opinion if they are afraid they should sell their bitcoins and go away not buy a centralized crap

We are going to see a lot more of this type of nonsense in the "news" for a while though since the Coldcard bug is the hot topic so everyone would try to connect it to something and seek their own agenda. I wouldn't be surprised if some shitcoin pumpers even used it as an excuse to pump some shitcoin saying something like "not affected by Coldcard hack" LOL

[Dr.Bitcoin_Strange]

According to two different articles that I read which came up with same report, they categorically stated in that article that they are not saying or very sure that the inflow is connected to the hack.

"I’m not saying it’s connected, we just don’t know," Said the Eric Balchunas, Bloomberg  senior ETF analyst

Logically, if there were so many investors that migrated from self custody to Bitcoin ETF, then there would have been so much selling pressure on that day which would have driven the market down but I didn't see any much impact on the price of Bitcoin. Even before the hack, would those companies say they were not having new investor? They just want to use the event of this hack as an advantage to put this kind of news out there so that so that some naive investors will gullible to come and invest their money in their company.

Even centralized exchanged owner will also try to use this hack as a means to tell people that holding their coins on CEX is safer, just as CZ has also done.

Binance co-founder Changpeng “CZ” Zhao also weighed in on the debate, arguing that storing crypto on centralized exchanges may now be “statistically safer” than self-custody, citing data from analyst Willy Woo that cumulative Bitcoin losses from self-custody incidents have surpassed those from exchange hacks.

[Odohu]

This is not supposed to be news because inflow happens normally but in order to make it trend, they have to attach the Coldcard hack. For those who are expressing pessimism anout Bitcoin, they have to check the charts to see that despite the fud flowing around, Bitcoin have just broken above $65k meaning that when some people are panicking, some are scooping more coins and consolidating on their position.

[GeorgeJohn]

Bitcoin have just broken above $65k meaning that when some people are panicking, some are scooping more coins and consolidating on their position. 

It's not yet above 65k as of now...That's why i keeps emphasizing that we shouldn't be following all Internet comments, mostly bad news of bitcoin, most people get panicked whenever they heard a sudden news of bitcoin falling...If everyone follows the recent reactions of people about bitcoin price, it means that most of the holders will sell all their Bitcoin..currently the price is at 65k, instead of the news on social media to make the price to depreciate, it's making it appreciate, that's why i believe strongly that bitcoin price unpredictable..