BlackRock Bitcoin ETF sees zero flows amid North Korean hacker threat

BlackRock’s iShares Bitcoin ETF (IBIT) recorded another day of zero inflows on Tuesday, marking four out of five trading days with no new investments.  

This trend comes as spot Bitcoin (CRYPTO:BTC) ETFs in the U.S. continue to face substantial outflows, totaling $287.78 million for Bitcoin and $47.4 million for Ethereum (CRYPTO:ETH) on Tuesday.  

The downturn coincides with a warning from U.S. authorities about North Korean hackers targeting firms involved in the expanding Bitcoin ETF market.  

Since August 27, BlackRock's Bitcoin ETF has seen no inflows except on August 29, when it recorded $13.5 million in outflows.  

Despite the recent decline, the ETF’s cumulative net inflows since its launch in January remain close to $21 billion, according to Farside Investors.  

SosoValue data also shows that Fidelity led the outflows among spot Bitcoin ETFs with $162.3 million, followed by Grayscale at $50.4 million.  

Ethereum ETFs have also been hit hard, with $47.4 million in negative flows on Tuesday, the largest since August 2.  

ETF analyst Eric Balchunas noted that while Ether ETFs have faced significant outflows due to the "ETHE unlock," there is optimism for a turnaround once the unlock phase ends.  

Meanwhile, the U.S. Federal Bureau of Investigation (FBI) has issued a warning about North Korean cyber threats targeting Bitcoin ETF firms and DeFi companies.  

The FBI reported that North Korean hackers are using advanced social engineering techniques to infiltrate the crypto industry.  

These methods involve extensive research, fake scenarios, and impersonations to target employees and extract sensitive information.  

The FBI's warning adds to growing concerns in the crypto space, particularly for companies managing large volumes of digital assets.  

North Korean hackers, including the notorious Lazarus Group, have a history of attacking crypto firms and using tools like Tornado Cash to obscure stolen funds.  

Recent reports from blockchain data firm Chainalysis indicate that these hackers steal hundreds of millions of dollars in crypto annually through various attacks.  

Given the escalating threat from North Korean cyber actors, crypto firms are urged to bolster their security measures to protect against potential breaches.  

Investors are also advised to stay alert as hackers increasingly target individuals with sophisticated attacks tailored to exploit vulnerabilities in the rapidly evolving digital asset market.