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Coldcard outflow shakes bitcoin self-custody model as Bloomberg raises ETF alternative

An outflow of about $89 million from the Coldcard hardware wallet platform has reignited debate over the safety of bitcoin self-custody. Bloomberg senior ETF analyst Eric Balchunas said the incident could underscore the benefits of regulated spot bitcoin exchange-traded funds. He pointed to a firmware flaw in Coldcard and questioned the scale of its maker Coinkite, while noting ETFs are less suitable for spending bitcoin directly.