Odaily Planet Daily reports: Eric Balchunas, Senior ETF Analyst at Bloomberg, posted on X commenting on the Coldcard wallet security incident. He questioned whether a company of only about five people is suited to bear the critical responsibility of Bitcoin storage, noting that the number of employees behind Coldcard “seems unbelievably low.” He asked whether people would be willing to entrust their life savings to a bank with only five employees headquartered in Canada. While this might be seen as a feature in the crypto industry, from a traditional finance perspective, it would be a clear red flag.
Balchunas further noted that, by comparison, institutions with larger teams, such as Coinbase and Ledger, may have greater advantages in security investment and operational capabilities, even if users incur higher transaction costs. Bitcoin ETFs offer an alternative: investors can benefit from the security provided by large, professional, regulated financial institutions while enjoying lower management fees.