Home Latest Insights | News Blackrock’s IBIT Bitcoin ETF records $875M of inflows Amid 1-inch DEX Hack

Blackrock’s IBIT Bitcoin ETF records $875M of inflows Amid 1-inch DEX Hack

Blackrock’s IBIT Bitcoin ETF records $875M of inflows Amid 1-inch DEX Hack

The world of cryptocurrency investment has witnessed a significant milestone with BlackRock’s IBIT Bitcoin ETF recording an unprecedented $875 million of inflows. This event marks the most substantial single-day inflow since the ETF’s launch, signaling a robust confidence from investors and a bullish outlook on the future of Bitcoin.

The IBIT Bitcoin ETF, which was introduced by BlackRock in January, has been a game-changer in the crypto investment space. It has provided investors with a regulated and secure avenue to gain exposure to Bitcoin without the complexities of direct cryptocurrency ownership. The record inflow occurred on October 30th and has surpassed the previous high of $849 million set in March, reflecting a growing institutional appetite for Bitcoin exposure through traditional financial instruments.

The surge in inflows coincides with a broader crypto market rally, with Bitcoin trading near its March high of $73,679. Analysts are closely watching the upcoming U.S. presidential election on November 5th as a potential catalyst for Bitcoin to break out to new highs. The sentiment is buoyed by the fear of missing out (FOMO) among investors, as the ETF’s daily trading volume topped $3.35 billion on October 29th, its highest since April 1st.

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BlackRock’s performance has notably overshadowed its competitors, with the other 10 U.S.-listed spot Bitcoin ETFs collectively bringing in just $21.3 million in inflows. Fidelity’s Wise Origin Bitcoin Fund came in second with $12.6 million in inflows, while Bitwise’s Bitcoin ETF saw outflows of $23.9 million.

The 1-inch DEX gets compromised

On October 30th, 2024, between 9:12 PM and 11:22 PM CET, users of the 1inch dApp experienced a vulnerability that could have had significant consequences for their digital assets. This incident has raised concerns about the safety of DeFi platforms and the measures taken to protect users’ investments.

The security issue stemmed from a glitch in a third-party tool called “Lottie Player,” which is used to display animations on the 1inch web dApp. An attacker exploited this vulnerability to send out fake signature requests to users. If signed, these requests would grant the attacker control over the user’s funds, potentially leading to a complete drain of their assets.

Fortunately, the 1inch team responded swiftly to the incident. They identified and resolved the issue within hours, removing the compromised Lottie Player tool from their dApp. The quick action taken by the team prevented any further potential losses and restored the integrity of the platform.

In the wake of the incident, 1inch has taken steps to reinforce their security measures and protect users from similar vulnerabilities in the future. They have also confirmed that parts of their ecosystem, such as the 1inch Wallet, API, and protocols, were not affected by this breach.

For users, this event serves as a reminder of the importance of vigilance when interacting with DeFi platforms. Double-checking unexpected requests and being cautious with signature approvals are crucial habits for safeguarding one’s digital assets.

The 1inch DEX compromise highlights the ongoing challenges faced by DeFi platforms in ensuring the security of their systems. As the DeFi space continues to grow, so does the sophistication of attacks. It is imperative for DeFi projects to invest in robust security frameworks and for users to remain informed and cautious.

The 1inch DEX compromise was a stark reminder of the risks associated with DeFi platforms. However, the effective response and the measures taken by the 1inch team demonstrate their commitment to user safety and platform security. As the DeFi industry evolves, both platforms and users must work together to foster a secure and trustworthy ecosystem.

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