US Spot Bitcoin ETFs Record Best Weekly Inflows Since April, Says Bloomberg Analyst
Key Takeaways
- •US spot Bitcoin ETFs attracted approximately $1 billion in net inflows this week, their strongest weekly performance since April and third-best since October 2024.
- •Bloomberg analyst Eric Balchunas described the period since last October as Bitcoin's 'silent IPO,' where early holders distributed supply to institutional buyers while prices remained subdued.
- •A Coldcard hardware wallet vulnerability led to the theft of approximately $116 million in Bitcoin through flawed wallet key generation.
- •Balchunas indicated the Coldcard breach could eventually encourage investors to migrate from self-custody toward regulated ETF products, though he emphasized that correlation does not equal causation.
- •Spot Bitcoin ETFs have become one of the most successful ETF launches in history since receiving SEC approval in January 2024, managing tens of billions in collective assets.
US spot Bitcoin exchange-traded funds (ETFs) attracted approximately $1 billion in net inflows this week, marking their strongest weekly performance since April and the third-best week since last October, according to Bloomberg ETF analyst Eric Balchunas.
The figures, shared by Balchunas on Saturday, point to a sharp rebound in investor demand following months of uneven flows, even as uncertainty persists around digital asset regulation and the security of crypto self-custody. Since receiving SEC approval in January 2024, the suite of spot Bitcoin ETFs has become one of the most successful ETF launches in history, collectively managing tens of billions in assets and establishing regulated Wall Street access to Bitcoin exposure — making weekly flow data a closely watched barometer of institutional and retail sentiment toward digital assets.
Balchunas characterized the period dating back to last October as Bitcoin's "silent IPO" — a term popularized by investor Jordi Visser in November. The concept describes a generational shift among Bitcoin holders: early investors selling into growing demand from ETFs and other institutional buyers, creating enough supply distribution to keep Bitcoin's price subdued despite substantial new capital entering the market through regulated vehicles.
That distribution phase coincided with deteriorating ETF flows relative to earlier periods of stronger demand, making this week's rebound particularly notable. Whether the inflow recovery marks a durable trend or a single-week anomaly will depend on whether momentum continues in the coming weeks, especially given that ETF flow patterns have alternated between surges and outflows throughout the year.
Coldcard Breach Highlights Self-Custody Risks
The renewed ETF appetite also follows a major security incident involving Coldcard, a popular Bitcoin hardware wallet developed by Coinkite, which resulted in roughly $116 million worth of Bitcoin being stolen. The exploit was traced to a flaw in how affected devices generated wallet keys, allowing attackers to compromise funds held in wallets created using vulnerable firmware.
On Friday, Balchunas suggested the incident could ultimately strengthen the appeal of spot Bitcoin ETFs among investors who are uncomfortable with the technical and security responsibilities tied to self-custody. He pointed to the surge in ETF inflows following the hack as a potential, though unproven, link.
While explicitly noting that correlation does not imply causation, Balchunas said: "Long-term I can't imagine there aren't some who migrate over," referring to investors potentially shifting assets from cold storage into ETF products.
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