According to CoinMeta, a vulnerability in the Coldcard hardware wallet resulted in losses of approximately $38 million, severely undermining users' confidence in self-custody. This may prompt investors to turn to ETF. The vulnerability allowed attackers to re-create wallet seeds, thereby stealing bitcoins that users believed to be secure. Although the vulnerability has been fixed, affected users must generate new wallets and transfer their funds, as simply updating the firmware is not sufficient to eliminate the risk. Coldcard CEO NVK stated in an open letter that while the fix protects newly generated seeds, it cannot repair those generated on the vulnerable firmware. This incident highlights the technical challenges faced by self-custody as Bitcoin enters the mainstream finance, and many Bitcoin advocates consider it one of the most serious failures in the field of self-custody. Analysts point out that users are essentially exchanging one type of risk for another, and believe that the self-custody hardware sector is currently in a state of disaster, bringing more negative impacts to the industry.