Even those who were using coldcard wallets were sure that they were completely safe because their wallets are not online and there is absolutely no risks at all until this attack took place and stole so many bitcoins from so many people, and now people realize that nothing is always completely secure unless you take extra precautions. If those people had encrypted their wallets with password phrases, they might have not lost their bitcoins even if their seed phrases were exposed to the attackers, but what is done is done, and others will now learn from the mistakes of the victims of this attack for sure.

A lot of people won't be able to easily trust hardware wallets for some time now, they might prefer centralized exchanges over hardware wallets when it comes to the security of their funds, and some will still use them but now will make sure that their wallets have passphrases as well. Those who have old wallets might think of purchasing new ones if they plan to keep using hardware wallets and even those who are not using coldcard will do this for sure, because fear will not let them rest and be easy after this incident.

The Coldcard event is a big one, you cannot take it lightly. People lost their money in a hardware wallet that they trusted to store their life savings and it is unfortunate that they lost it because of some silly firmware bug that the Coinkite developers allowed into their device.

It is easy for you to blame people who are no longer sure about self-custody after this event, because you didn't lose anything. Don't get me wrong, i am not one of such people and i still believe in self-custody and i would only recommend it. However, i can understand why certain people would wonder if custodial storage would work better for them (even though it isn't a good option).

After the Coldcard incident, we need to be careful about self custody, but it is a bit of a leap to say that ETF or BlackRock are more trustworthy. The real issue here is being willing to take any risk. In self custody, losing the key or making a security mistake is your own responsibility, while in ETF, you have to rely on the custodian and financial institution.

However, in the current revolution of quantum computing, security is not automatically guaranteed just by having a hardware wallet. How the seed generation or backup is created is also important. And this was the biggest drawback of Coldcard we saw. And in my case, although I do not use a hardware wallet, I do not keep my Bitcoin without a self-custody wallet.

Self-custody isn't the problem. Poor security practices are. With proper backups, seed generation and multisig, you can significantly reduce the risks while keeping control of your BTC.

No service can be guaranteed to be 100% secure. Anything carries risks and failures. So if anyone thinks putting their money in ETFs is safer, wait until they run into problems with it.
Because they are merely custodians, they never make asset management more secure. While users may find it easier to manage their assets and avoid the hassle of managing private keys, users are only exposing themselves to greater risk by placing their assets there.
Self-custody is the best way to manage assets. If anyone thinks it isn't, just because of this Coldcard issue, congratulations to those individuals who are now prey to these custodians and exchanges.