Legendary Bitcoin Trader Peter Brandt Shares Essential ETF Insights

Peter Brandt, widely regarded as a trading expert, has shared an important warning about leveraged and inverse exchange-traded funds (ETFs). He has expressed significant disapproval of these financial instruments, comparing them to gambling.

Brandt argues that these ETFs primarily represent bets on market volatility rather than on the direction of prices. This has led him to advocate for shorting these instruments as a strategy for effective risk management.

With five decades of experience in the markets, Brandt underscores the necessity of differentiating between sound and unsound risk. He notes that the type of speculator drawn to leveraged and inverse ETFs typically seeks rapid profits, a mindset he cautions against.

Fortunately, Bitcoin ETFs are not included in this critical assessment, suggesting that trading in them is not inherently problematic according to Brandt’s views. In fact, Bitcoin ETFs are currently seeing significant trading activity. For instance, on July 11, total net inflows for spot Bitcoin ETFs reached $78.93 million, continuing a positive trend over the previous five days. The Grayscale ETF experienced a single-day outflow of $37.69 million, while the BlackRock ETF and the Fidelity ETF reported single-day inflows of $72.09 million and $32.69 million, respectively.