Bloomberg ETF analysts question Coldcard's security capabilities: it's “unbelievable” that a team of about 5 people runs an important wallet

Comparing news, Bloomberg senior ETF analyst Eric Balchunas posted an article on the X platform commenting on the Coldcard wallet security incident. He questioned whether a company of only about 5 people was suitable for such an important Bitcoin storage role, and said that the number of employees behind Coldcard “seems unbelievably low”. If a bank has only 5 employees and is headquartered in Canada, would people be willing to store their lifetime savings in it? This may be viewed as a characteristic in the crypto industry, but from a traditional financial perspective, this would be a clear sign of risk.

Balchunas further stated that in comparison, institutions with larger teams, such as Coinbase and Ledger, may have an advantage in terms of secure investment and operational capabilities, even if users are required to bear higher transaction costs. Bitcoin ETFs provide an alternative: investors can get both the security guarantees provided by large, specialized, regulated financial institutions, and enjoy lower management fees.