US bitcoin funds record strongest inflows since April after wallet security breach

Monday 10 August 2026 - 21:30

By: Azzat Manal

US bitcoin funds record strongest inflows since April after wallet security breach

US exchange-traded funds tracking bitcoin attracted more than $850 million during the week ending August 7, marking their strongest weekly inflows since April, according to Bloomberg data.

The renewed interest comes as investors reassess the risks associated with holding cryptocurrencies directly, particularly after a security incident involving digital wallets raised concerns about the protection of bitcoin holdings.

Spot bitcoin ETFs offer investors exposure to the cryptocurrency’s price movements through regulated financial products without requiring them to purchase bitcoin directly or manage private keys and digital wallets themselves.

The latest inflows followed a warning from CoinKite, the company behind Coldcard bitcoin wallets, about a security vulnerability reportedly exploited by hackers. The incident resulted in the theft of nearly $130 million worth of bitcoin, according to the information cited in the report.

The episode has once again highlighted one of the cryptocurrency market’s major challenges: securing digital assets against theft and unauthorized access. Investors who manage their own wallets are generally responsible for protecting the credentials needed to access their holdings.

Bloomberg Intelligence analyst Eric Balchunas said such incidents could increase the appeal of spot bitcoin ETFs among investors who want exposure to bitcoin without taking direct responsibility for digital asset custody.

The strong inflows suggest that some investors are increasingly turning to regulated investment vehicles as an alternative to direct ownership. As cryptocurrency markets mature, custody and cybersecurity are becoming increasingly important considerations alongside price performance.