Spot bitcoin exchange-traded funds (ETFs) saw net inflows of $382 million over two days.

On Aug. 5 (local time), blockchain media outlet Cointelegraph reported that the hacking of the Coldcard hardware wallet has again highlighted digital asset storage risks, prompting inflows into institutionally custodied ETFs.

Based on data compiled by SoSoValue, spot bitcoin ETFs recorded net inflows of $170 million on Aug. 4 and $211.5 million on Aug. 5. The market absorbed both the Coldcard incident and recent selling, but fresh money flowed into ETFs.

The incident has revived an existing debate over whether self-custody or institutional custody is safer. Galaxy Research assessed that the attack may have affected up to 7,300 addresses and that as much as $130 million worth of bitcoin may have been lost.

The inflows were led by BlackRock's iShares Bitcoin Trust (IBIT). IBIT recorded inflows of $111 million on Aug. 4 and $170 million on Aug. 5. Fidelity's Wise Origin Bitcoin Fund (FBTC) also saw about $33 million and $20 million over the same period.

Invesco Galaxy Bitcoin ETF (BTCO) also posted net inflows of $6.7 million on Aug. 4. It marked the first daily net inflow since July 1 and amounted to about 3.9 percent of its cumulative net inflows of $172 million.

The market has also responded that the Coldcard incident may have instead highlighted the ETF custody structure. Eric Balchunas (에릭 발추나스), a senior ETF analyst at Bloomberg Intelligence, wrote in a post on X, formerly Twitter, that the Coldcard hack could further spur a shift of funds into spot bitcoin ETFs. He explained that the structure in which ETFs entrust asset custody to traditional financial institutions could be seen by investors as an advantage.

The market is also reflecting pressure from Strategy, led by Michael Saylor, recently selling 1,638 BTC alongside the Coldcard incident. Bitcoin is currently trading above $64,000.

Some also see that moving stolen funds may not be easy. Cryptocurrency analyst Shagun (샤군) noted that large-scale fund movements are likely to be monitored by blockchain analysts, exchanges and other investors. Because bitcoin transactions can be publicly traced, this could create constraints in laundering or cashing out the funds.

Changes within the ETF market are also continuing. Balchunas also mentioned the closure of Hashdex's spot bitcoin ETF and BlackRock's planned reverse split for its spot ether ETF. The spot ETF market is entering a phase in which custody stability, product structure changes and investor confidence act at the same time, in addition to inflows and outflows for individual products.

Microstrategy sells Bitcoin and Coldcard destroyed its users and price didn't move. When devastating news doesn't affect price, the bottom is close.