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$116M Bitcoin hardware wallet exploit renews self-custody debate

US spot Bitcoin ETFs notched roughly $1 billion in net inflows for the week, even as the exploit refocused attention on self-custody risks.

Reported · Written up by our desk · Market Structure

Cointelegraph reports a $116 million Bitcoin hardware wallet exploit has reignited the long-running debate over whether users should hold their own keys or rely on exchange and ETF custody. The incident has also come as US spot Bitcoin ETFs recorded their strongest inflows since April. Cointelegraph cites a Bloomberg analyst question about whether security scares could eventually push more investors away from self-custody and toward ETFs. The outlet also notes that ETF net inflows were about $1 billion for the week, despite Bitcoin remaining subdued.

Strategy is preparing to resume Bitcoin purchases after a rare period of selling, and the company’s CEO Phong Le said it plans to restart Bitcoin accumulation later this year to reinforce its long-term approach. Cointelegraph says Strategy bought about 175,000 BTC and sold about 7,000 BTC this year, leaving the firm with more than 840,000 BTC, the largest institutional holding.

Still, Cointelegraph highlights that Strategy has sold Bitcoin on four occasions since May, most recently unloading 1,690 BTC to support preferred dividends, buybacks, and its dollar reserve. The outlet adds that Novaque Research said selling at prices below Bitcoin net asset value can make new capital raising more dilutive and harder to sustain.

Latest closeBitcoin $62,958.19 ▼0.7%

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