According to U.Today, trading legend Peter Brandt has issued a critical advisory regarding leveraged and inverse exchange-traded funds (ETFs). Brandt, known for his extensive market experience, expressed a strong aversion to these financial instruments, likening them to gambling. He emphasized 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.

Brandt's perspective, shaped by 50 years of market experience, underscores the importance of distinguishing between sound and unsound risk. He noted that speculators attracted to leveraged and inverse ETFs often seek quick profits, a mentality he advises against. Brandt's comments highlight the need for careful consideration when engaging with these financial products.

In contrast, Brandt pointed out that Bitcoin ETFs do not fall under the same category as leveraged and inverse ETFs. He suggested that trading Bitcoin ETFs is not as risky, provided one adheres to sound trading principles. Despite this, Bitcoin ETFs continue to see significant trading activity. On July 11, the total net inflow of spot Bitcoin ETFs was $78.93 million, marking 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 ETF (IBIT) and the Fidelity ETF (FBTC) saw single-day inflows of $72.09 million and $32.69 million, respectively.