Bitcoin's $116M Wallet Hack Sparks Rush to Safer ETFs
A major crypto wallet hack drained $116M in Bitcoin, while safer Bitcoin funds pulled in $1 billion in new money this week.
Image source: CoinTelegraph
A big week for Bitcoin news mixed good and bad: investors poured about $1 billion into Bitcoin funds, even as a major hacking incident drained $116 million from crypto users' digital wallets.
The wallet hack and the safety debate
The hack targeted a hardware wallet (a physical device, like a USB stick, that stores your crypto offline for safety) called Coldcard. A flaw in how it created security keys let attackers steal roughly $116 million in Bitcoin.
This reminds people of the risk of self-custody (holding your own crypto yourself, instead of letting a company hold it for you). Experts think some nervous investors may now prefer spot Bitcoin ETFs — investment funds that let you own Bitcoin through a regular stock account, without managing the coins yourself.
Key numbers from the week:
- ~$1 billion flowed into US Bitcoin ETFs — the third-best week since October
- $116 million in Bitcoin stolen in the Coldcard hack
Bitcoin miners chase the AI boom
In other news, AI company Anthropic reportedly signed a $9 billion deal with Riot Platforms, a Bitcoin miner, to use electricity from its Texas facility. Bitcoin mining (using powerful computers to earn new Bitcoin) uses huge amounts of power — and now AI companies desperately need that same power. Riot's shares are up about 50% this year.
Trump Media's crypto losses
Finally, Trump Media reported a $238 million quarterly loss, partly from unrealized losses (paper losses on investments it still owns, not yet sold) on its crypto holdings. The company held over 14,000 Bitcoin worth about $890 million by late July and says it will rethink its crypto strategy.
The bottom line: Big investors still want Bitcoin, but this week showed both the rewards and the risks — from hacking dangers to swinging company profits.
This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/crypto-biz-bitcoin-self-custody-etf-inflows-strategy-riot-ai?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound