The Coldcard wallet hack is prompting analysts to consider a shift in investor behavior toward regulated custody and spot Bitcoin ETFs, which could lift demand for ETF products and boost related crypto stocks.

Big ETF inflows are flowing into crypto-backed funds, with BlackRock’s iShares Bitcoin Trust leading inflows on consecutive days, followed by Fidelity’s Wise Origin Bitcoin Fund and Invesco Galaxy ETF, signaling growing investor interest in regulated crypto exposure.

Despite the ETF allure, committed Bitcoin advocates may continue self-custody, with the main impact seen in attracting newcomers and risk-averse investors to ETFs.

Galaxy Research, the Galaxy Digital research arm, is tracking the Coldcard incident closely, estimating affected addresses and potential losses and informing market commentary.

The incident is likened to the 2023 Milk Sad exploit, with expectations that wallet security will improve and self-custody will remain viable.

Galaxy Research estimates roughly 1,596 BTC stolen from over 7,300 addresses across multiple attack waves, with possible total losses up to about 2,055 BTC (around $130 million); most stolen funds have not yet moved.

The piece highlights the ongoing debate over self-custody security and the rising appeal of regulated crypto investment vehicles in a shifting market landscape.

Bitcoin hovered around $64,100, after a dip below $62,500, as traders weigh custody concerns alongside other selling pressures.

Galaxy Research estimates the Coldcard incident could affect up to 7,300 addresses with about $130 million in suspected losses, underscoring security risks in self-custody.

Analysts suggest the breach could have a positive read-through for crypto equities tied to institutional adoption and for custodial/managed custody providers.

The incident reinforces the trade-off between self-custody and centralized solutions, with spot Bitcoin ETFs viewed as a safer alternative for investors unwilling to manage private keys.