Legendary Bitcoin Trader Peter Brandt Issues Must-Know ETF Insight

U.Today - Peter Brandt, recognised by many as a trading legend, has issued a crucial advisory regarding leveraged and inverse exchange-traded funds, or ETFs for short. Long story short, the trader expressed a strong aversion to these financial instruments, likening them to gambling.

Why? He emphasizes that these ETFs represent bets on volatility rather than price direction, indicating a preference for shorting these instruments as part of a strategic risk management approach.

With 50 years of market experience, Brandt’s perspective highlights the importance of distinguishing between sound and unsound risk. His observations reveal that the type of speculator attracted to leveraged and inverse ETFs often seeks quick profits, a mentality he advises against.

What about Bitcoin ETFs?Fortunately, for example, Bitcoin ETFs do not fall under this category, which means that trading them, if you stick to Brandt's opinion, is not that shameful. In general, however, these instruments on the largest cryptocurrency are not experiencing a lack of trading activity as it is.

Thus, on July 11, the total net inflow of spot Bitcoin ETFs was $78.93 million, continuing a five-day trend of positive net inflows. Specifically, the Grayscale ETF (GBTC) experienced a single-day outflow of $37.69 million, while the BlackRock (NYSE:BLK ) ETF (IBIT) and the Fidelity ETF (FBTC) saw single-day inflows of $72.09 million and $32.69 million, respectively.

This article was originally published on U.Today

Source: Investing.com