Bloomberg analyst says Coldcard hack highlights strengths of spot BTC ETFs

Bloomberg ETF analyst Eric Balchunas said the recent hack of the Coldcard hardware wallet could make spot Bitcoin ETFs look like a better option for some investors, including long-term BTC holders. In a post on X, Balchunas said ETF issuers and custodians could be seen as having an advantage over small firms like Coldcard, which has five employees, because they are large financial institutions that have managed client assets for decades. He added there is no guarantee investors would avoid losses if an ETF custodian were hacked, but such an incident would at least be likely to trigger an immediate regulatory probe and investigation. Earlier, about 1,816 BTC in losses was reported due to a code flaw at Coldcard, and the company urged users to install a security update, generate a new seed, and move their funds, saying the security threat remains in place.