After $6.4 Billion Bybit Hack, Wall Street Says Buy Bitcoin Proxies Like Coinbase and Strategy Instead

Wall Street analysts are telling clients to focus on publicly traded crypto proxies rather than direct token ownership after the record $6.4 billion hack of Bybit, the second-largest crypto exchange by volume. Firms including Cantor Fitzgerald, TD Cowen, and Compass Point characterize the theft as a security failure specific to Binance—a rival exchange also implicated in past breaches—rather than a systemic weakness in blockchain technology. They argue that regulated, U.S.-listed companies such as Coinbase, Robinhood, and Strategy (formerly MicroStrategy) offer exposure to Bitcoin's upside with stronger custody, compliance, and investor protections. The hack, attributed to North Korean state-sponsored group Lazarus, drained Ethereum from Bybit's cold wallet and triggered billions in outflows, yet Bitcoin's price remained relatively stable. Analysts view this resilience as evidence that institutional investors are increasingly comfortable with indirect crypto exposure through equities. For retail traders worried about exchange hacks, these stocks provide a familiar, liquid, and regulated alternative to holding coins directly. As the crypto market matures, expect more investors to choose the stock market as their gateway to Bitcoin.