Investor and “Wealthy Dad Poor Dad” writer Robert Kiyosaki warned traders to watch out for holding Bitcoin (BTC), gold and silver by means of alternate‑traded funds, saying these paper‑primarily based devices are not any substitute for the actual 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 traders, however they don’t give traders 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 informed his followers to ditch “faux cash,” that means fiat foreign money, 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 develop 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 recognition as extra traders search publicity to cryptocurrencies and valuable metals with out coping with chilly‑storage wallets or vaults.
A number of spot Bitcoin ETFs, launched within the US this yr, repeatedly commerce billions of {dollars}’ value of shares. However that comfort comes at a value, Kiyosaki contends: you’re shopping for a declare, not the asset itself.
Nevertheless, ETF consultants like senior Bloomberg analyst Eric Balchunas consider such fears are unfounded. He informed 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 linked to precise Bitcoin; it’s a one‑for‑one ratio, there isn’t a paper.”
Balchunas acknowledged that the crypto group is commonly suspicious of conventional finance, however famous the ETF sector has operated for 30 years with “a sterling repute.”
Balchunas mentioned that rich Bitcoin holders would possibly truly 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 traders can’t afford, and a regulated fund is perhaps the higher guess for them.
The controversy highlights a broader pressure between advocates of decentralized property and the normal 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.
