Spot Bitcoin ETFs returned to inflows this week as Bitcoin held near $64,000, even as a Coldcard hardware-wallet exploit pushed losses past $116 million and reignited the debate over crypto custody. Capriole Investments points to a roughly $54,000 production-cost floor as support.
US spot Bitcoin ETFs pulled in $211.5 million on Tuesday, adding to Monday's $170 million, according to SoSoValue data. Bitcoin held near $64,000 even as a Coldcard hack drained more than $116 million from hardware-wallet holders.
ETF inflows return as custody debate flares
BlackRock's iShares Bitcoin Trust (IBIT) led the rebound, adding $111 million on Monday and $170 million on Tuesday, according to Farside Investors data. Fidelity's Wise Origin Bitcoin Fund (FBTC) followed with about $33 million and roughly $20 million on the respective days. Invesco Galaxy Bitcoin ETF (BTCO) posted $6.7 million in Monday inflows, its first positive daily flow since July 1, about 3.9% of its cumulative net inflows of $172 million.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said the hack could encourage greater migration toward Bitcoin ETFs as investors reconsider institutional custody, writing that reliance on traditional custodians may "all the sudden seem like a feature."
Coldcard hack pushes losses past $116 million
The exploit, tied to a firmware bug dating to March 2021, has drained more than $116 million from owners of the affected hardware wallets, which generated recovery seeds with roughly 40 bits of entropy instead of 128. That flaw leaves long-term holders exposed to brute-force sweeps of their seeds. Galaxy Research separately estimated the attack affected as many as 7,300 addresses, with about $130 million in suspected Bitcoin losses.
A fourth wave of drains moved 388.9 BTC, worth roughly $29 million, on a single Sunday evening. A tripwire control wallet built by developer James O'Beirne, with no added entropy, was swept within an hour of going live.
Bitcoin holds near $64,000 as bulls cite a cost floor
Bitcoin traded at $64,113, down around 0.8% over the past seven days, according to CoinGecko. The asset's low for the period fell below $62,500.
Capriole Investments founder Charles Edwards pegged Bitcoin's production cost at $54,000, with the electrical component logged at $40,000. Prices have historically dipped below production cost at every cycle bottom, meaning today's tape still trades at a premium to that floor. Meanwhile, the rebound follows an eight-week streak of net outflows that ended in July, when spot Bitcoin ETFs recorded between $381 million and $403 million in net inflows, the first positive month since April.
Sources: Cointelegraph, Bitcoin News, Crypto Briefing
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