The Coldcard cold wallet breach has sparked renewed debate over the risks of self-custody in crypto. Galaxy Research, part of Galaxy Digital, has taken a leading role in tracking the incident. Researchers at the firm are regularly publishing data on affected addresses and potential losses from the attack.
Bloomberg Intelligence’s Eric Balchunas said the event could shift investor sentiment toward Bitcoin ETFs. He argued that institutional custodians might now look more reliable compared to smaller firms managing private key systems. What was once seen as a weakness of the traditional finance model could now be framed as a strength.
Balchunas also noted wider movement in the ETF space. Hashdex has shut down its spot Bitcoin ETF, while BlackRock plans to reduce the number of shares in its Ethereum ETF through a reverse split. These moves show how market dynamics are shifting as institutional infrastructure in crypto continues to evolve.
Bitcoin’s price held steady in the wake of the hack, though it dipped below $62,500 at times. The asset ended at $64,113 at the time of publication, a drop of about 0.8% in the past seven days. Selling pressure came from Michael Saylor’s company, which moved 1,638 BTC recently.
Shagun, a crypto commentator, highlighted a unique challenge for the Coldcard attackers. Because Bitcoin is transparent on the blockchain, large fund movements are likely to be noticed and scrutinized by researchers and exchanges. The visibility of the blockchain could complicate any attempts to move the stolen funds.