Investor and “Wealthy Dad Poor Dad” creator Robert Kiyosaki warned buyers to watch out for holding Bitcoin (BTC), gold and silver by way of trade‑traded funds, saying these paper‑primarily based devices aren’t any substitute for the true factor.
Kiyosaki likened ETFs to having solely a “image of a gun” for self‑protection, helpful in good instances however ineffective in a disaster. He mentioned ETFs make property corresponding to Bitcoin and bullion extra accessible to on a regular basis buyers, however they don’t give buyers bodily possession of the underlying commodity.
He wrote:
“Generally it’s greatest to have actual gold, silver, Bitcoin, and a gun.”
Kiyosaki’s skepticism isn’t new, he has beforehand instructed his followers to ditch “pretend cash,” which means fiat forex, and switch to bearer property like Bitcoin, gold and silver as a hedge towards inflation and a weakening U.S. greenback.
He argued that paper claims on exhausting property can change into nugatory if the establishment issuing them fails to carry sufficient reserves. He added {that a} disaster of confidence can set off a run on an ETF or financial institution that doesn’t have enough liquidity, risking collapse.
ETFs have exploded in reputation as extra buyers search publicity to cryptocurrencies and treasured metals with out coping with chilly‑storage wallets or vaults.
A number of spot Bitcoin ETFs, launched within the US this yr, frequently commerce billions of {dollars}’ price of shares. However that comfort comes at a value, Kiyosaki contends: you might be shopping for a declare, not the asset itself.
Nevertheless, ETF consultants like senior Bloomberg analyst Eric Balchunas consider such fears are unfounded. He instructed CoinTelegraph that ETFs are topic to strict safeguards and authorized separation between issuers and custodians
He mentioned:
“All of the shares of the ETF are related to precise Bitcoin; it’s a one‑for‑one ratio, there isn’t any paper.”
Balchunas acknowledged that the crypto neighborhood is commonly suspicious of conventional finance, however famous the ETF sector has operated for 30 years with “a sterling popularity.”
Balchunas mentioned that rich Bitcoin holders would possibly really be safer utilizing ETFs, as a result of self‑custody could make them targets for theft and ransom schemes. He added that bodily gold and silver additionally carry storage and safety prices that many retail buyers can’t afford, and a regulated fund could be the higher guess for them.
The talk highlights a broader rigidity between advocates of decentralized property and the standard monetary system. Whereas merchandise like spot Bitcoin ETFs have introduced billions in inflows and opened digital property to a wider viewers, skeptics corresponding to Kiyosaki consider nothing beats private possession in a disaster.