Bitcoin ETFs Add Nearly $800 Million in the Wake of Coldcard Exploit
U.S. spot Bitcoin ETFs attracted $790.6 million in net inflows over seven trading days, marking one of the strongest weekly periods recently. During this period, more than $1.0 billion entered Bitcoin ETF funds while $212.7 million exited, showing broad positive demand. BlackRock's IBIT accounted for the majority of inflows, with Fidelity's FBTC adding $11.2 million and Bitwise's BITB adding $1.7 million. The seven-day flow chart showed one notable setback on July 31, when ETFs recorded $212.7 million in net outflows, the only negative session. Following the single selloff, consecutive gains in the next four trading sessions more than offset the losses by the week's end. ETF flow data provides a useful lens into institutional demand, indicating that demand remained intact despite security concerns during the week. The Coldcard firmware exploit renewed debate around self-custody and operational security but did not deter institutional investors from Bitcoin ETFs. ETF investors appeared comfortable continuing to allocate capital through regulated products, showing resilience amid Bitcoin security headlines. ETF flow data cannot explain investor motivation or whether the Coldcard exploit influenced buying decisions during this period. A handful of funds experienced modest outflows, but none offset IBIT's strength, keeping total ETF demand firmly positive throughout the week. Bitcoin access varies among investors, including self-custody, public companies, and regulated ETFs, each with distinct tradeoffs and risk profiles. The Bitcoin ETF Dashboard offers a real-time view of capital flows, helping track institutional Bitcoin demand amid changing market conditions.
BlackRock’s Bitcoin ETF pulls in $604M across four straight days of inflows
BlackRock's iShares Bitcoin Trust (IBIT) recorded four consecutive days of net inflows totaling 9,269 BTC, valued at about $604 million as of August 7, 2026. IBIT's share of inflows during a three-day window reached approximately $478 million, capturing the majority of total sector demand. On August 4, IBIT reported net inflows of $170.3 million, which increased to $196.8 million the following day. Since its January 2024 launch, IBIT has consistently accounted for 70 to 80 percent of daily inflows in the U.S. spot Bitcoin ETF market. Historical inflow streaks for IBIT generally ranged between $200 million and $600 million, with the current run near the top of that range. The four-day streak of 9,269 BTC net purchases indicates significant institutional demand against available spot liquidity. July 2026 was a weak month for Bitcoin ETF flows, reflecting a broader cooling of institutional appetite before the early August recovery. Between August 3 and August 5, U.S. spot Bitcoin ETFs collectively attracted roughly $626 million in net inflows. ETF inflows serve as a clean real-time proxy for institutional sentiment since they require compliance, legal review, and actual Bitcoin purchases. IBIT has absorbed approximately $523 million in redemptions during a difficult period in late 2025, showing fluctuating investor behavior.
Coldcard fallout shows up onchain as 210,000 bitcoin leaves old wallets
Approximately 210,000 bitcoin have moved out of long-term holder wallets in the past week, marking the largest decline since December 2024. Long-term holders are defined as entities whose coins have remained dormant for about 155 days or just over five months. This cohort is often regarded as the market's smart money due to their tendency to hold through short-term volatility. Before the Coldcard incident, long-term holder supply was just under 15 million BTC, near an all-time high, but now stands at approximately 14.7 million BTC. The Coldcard security breach involved weak randomness in firmware, allowing attackers to reconstruct wallet recovery phrases and drain bitcoin. Thousands of addresses were affected by the breach, with estimated losses reaching as much as $114 million. Unlike previous waves of distribution near market peaks, this movement is occurring near bitcoin lows, trading around $64,000, roughly 50% below its October all-time high. The decline in long-term holder supply may reflect a broader migration in bitcoin custody rather than a straightforward loss of conviction or selling. Coldcard urged affected users to generate new wallets and move funds because updating firmware alone cannot secure already compromised keys. Some of the decline in long-term holder supply could reflect users transferring bitcoin into newly generated wallets with stronger custody arrangements. Other holders may be moving assets to regulated custodians or spot bitcoin ETFs, reconsidering the risks of self-custody. U.S. spot bitcoin ETFs attracted approximately $754 million over the past week, with BlackRock's iShares Bitcoin Trust accounting for most inflows.
Bitcoin price tags $65.3K August high as low US jobs numbers cool Fed rate bets
Bitcoin reached a new August high of $65,340 on Bitstamp as markets responded to weaker US nonfarm payroll data released recently. The US economy lost 23,000 jobs in July, with the unemployment rate remaining steady at 4.1%, according to Bureau of Labor Statistics data. Revisions to previous months showed employment in May and June combined was 103,000 lower than initially reported, indicating a weaker labor market. This downward revision contributed to gains in both cryptocurrency and US stock markets, as traders anticipated potential Federal Reserve policy easing. The S&P 500 index opened 0.5% higher, while the Nasdaq Composite Index increased by just over 1% following the labor data release. Market expectations shifted, with the CME Group's FedWatch Tool showing a higher probability that the Federal Reserve will hold interest rates steady in September. Prior to the employment data release, analysts indicated that the figures would influence the tone for the September Federal Reserve meeting and the Jackson Hole symposium. Fabian Dori, CIO at Sygnum Bank, commented that Fed Chair Kevin Warsh's decisions would be affected by how much payroll data declined. QCP Capital described the macroeconomic environment for Bitcoin as uncertain, noting that recent price action showed resilience without clear directional confirmation. QCP also observed that despite corporate Bitcoin sales and a Coldcard wallet exploit, options markets showed limited demand for panic protection.
Bitcoin developer says self-custody fears cost him gains
German Bitcoin developer René Pickhardt revealed on August 6 that concerns about self-custody security prevented him from acquiring more Bitcoin despite its potential. Pickhardt clarified his hesitation stemmed from risk management related to security and key management, not from a critique of Bitcoin itself. His comments followed the Coldcard hardware wallet incident, which exposed vulnerabilities in private key generation methods. Security research linked the Coldcard firmware flaw to predictable seed generation, enabling attackers to reconstruct private keys without device possession. Coinkite, the manufacturer, acknowledged the firmware issue and released patches but warned that updating firmware does not fix seeds created under vulnerable conditions. Galaxy Research estimated approximately 1,755 BTC were stolen from about 5,000 wallets during multiple attack waves related to this vulnerability. Blockstream CEO Adam Back emphasized that Bitcoin holders bear full responsibility for safeguarding private keys, as no central authority can reverse transactions or reset lost keys. Block's researchers found certain Coldcard firmware configurations bypassed hardware randomness, falling back to weaker software-generated entropy during seed creation. The vulnerability affected seed phrases even if imported into other wallets, meaning changing hardware without generating new keys does not eliminate exposure. Users with compromised seeds are advised to securely generate new seeds and transfer funds on-chain to mitigate risks. Pickhardt noted that even properly generated private keys face risks from storage errors, implementation mistakes, and future computational advances. Hardware wallets reduce online attack surfaces but depend heavily on firmware, hardware design, and secure randomness for effective protection.
Reader comments