U.Today – Peter Brandt, widely regarded as a trading legend, has issued a crucial warning regarding leveraged and inverse exchange-traded funds, or ETFs. In short, the trader expressed a strong aversion to these financial instruments, comparing them to gambling.
Why? It highlights that these ETFs represent bets on volatility rather than price direction, indicating a preference for short positions in these instruments as part of a strategic risk management approach.
With 50 years of experience in the market, Brandt's perspective highlights the importance of distinguishing between healthy and unhealthy risk. His observations reveal that the type of speculator who is attracted to leveraged and inverse ETFs is often looking for quick gains, a mindset he advises against.
What about ETFs?
Fortunately, for example, Bitcoin ETFs do not fall into this category, which means that, if we stick to Brandt's opinion, trading them is not so shameful. However, in general, these instruments of the largest cryptocurrency do not experience a lack of trading activity.
Thus, on July 11, the total net inflow into spot Bitcoin ETFs was $78.93 million, continuing a five-day trend of positive net inflows. Specifically, the Grayscale ETF (GBTC) saw a single-day outflow of $37.69 million, while the BlackRock ETF (NYSE:) (IBIT) and Fidelity ETF (FBTC) saw single-day inflows of $72.09 million and $32.69 million, respectively.
This article was originally published on U.Today
