A firmware exploit affecting certain Coldcard hardware wallets dominated Bitcoin security headlines last week. Over the same seven trading days, U.S. spot Bitcoin ETFs added $790.6 million in net inflows, according to Bitcoin Magazine. More than $1.0 billion entered the funds while $212.7 million exited, producing one of the strongest weekly periods in recent months. The two developments are not necessarily related, but the timing sharpens the contrast between a custody incident and regulated institutional demand.
One session broke the streak. On July 31, U.S. spot Bitcoin ETFs recorded $212.7 million in net outflows—the only negative session during the seven-day window. Buyers returned almost immediately. The next four trading days posted consecutive gains: $170.1 million on August 3, $207.8 million on August 4, $241.6 million on August 5, and $99.4 million on August 6, as reported by Bitcoin Magazine. By week’s end, the positive sessions had more than offset the lone selloff.
BlackRock’s IBIT accounted for the majority of inflows. Over the seven-day period, IBIT attracted $757.5 million in rolling net inflows and extended its streak to four consecutive inflow days. On the latest trading day alone, IBIT added $128.3 million. Fidelity’s FBTC contributed $11.2 million and Bitwise’s BITB added $1.7 million on that same session, per the ETF Dashboard data cited by Bitcoin Magazine. A handful of smaller funds saw modest outflows, but none came close to offsetting IBIT’s continued strength.
ETF flows show where capital moved; they do not explain investor motivation. It is impossible to conclude from one week’s data whether buyers viewed the Coldcard exploit as insignificant, treated it as an opportunity, or simply continued long-term allocation strategies already in motion. What the numbers confirm is that institutional demand remained resilient during a week when Bitcoin security dominated industry coverage. A custody incident involving one hardware-wallet vendor is different from the broader investment case for Bitcoin, and ETF investors appeared comfortable continuing allocations through regulated products.
For additional context on Bitcoin market structure, see our coverage of Poolin’s Chapter 11 filing and U.S. crypto policy shifts in July 2026.
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