U.S. spot Bitcoin and Ether exchange-traded funds attracted roughly $1.1 billion in net inflows during the week ended August 7, marking the strongest seven-day stretch since April, according to data cited by The Block. The surge arrived even as trading volume remained subdued and Bitcoin hovered in a tight $62,000–$65,000 range.
Bloomberg analyst Eric Balchunas tied the inflow run to the Coldcard hardware-wallet exploit, noting that several Bitcoin funds have recorded daily inflows since the hack was disclosed. The vulnerability, traced to a firmware build error shipped in March 2021, routed seed generation to a deterministic software fallback instead of the device's hardware random-number generator, collapsing effective entropy from 128 bits to as little as 40 bits on older models. Attackers subsequently drained an estimated 1,816 BTC — worth roughly $116 million at current prices — from more than 5,200 addresses across multiple waves beginning July 30.
The timing is striking. July closed as the weakest month for Bitcoin ETF flows in 2026, punctuated by a $265.4 million outflow on July 31 alone. The very next session, August 3, opened a four-day streak of positive flows: $170.1 million, $211.5 million, $244.4 million, and $137.6 million, pushing the four-session total to $763.6 million. Ether ETFs joined the rally, adding $92.15 million on August 6 after two prior sessions of $53.1 million and $60.8 million.