Investor and author Robert Kiyosaki, known for “Poor Dad of a Rich Father,” has cautioned individuals about investing in Bitcoin (BTC), gold, and silver through exchange-traded funds (ETFs).
He likened ETFs to merely having “gun drawings” for self-protection, arguing that while these funds make assets like Bitcoin and bullion easier for the average investor to access, they don’t provide true ownership of the actual products.
He stated:
“It’s best to have real gold, silver, bitcoin, a gun.”
Kiyosaki has been openly skeptical for some time. He has previously advised his audience to discard “fake money,” referring to fiat currency, and has turned to tangible assets like Bitcoin, gold, and silver as a way to protect against inflation and a weakening US dollar.
He expressed concerns that if the institutions managing these assets lack sufficient reserves, the paper claims surrounding hard assets could become meaningless. Kiyosaki highlighted that a crisis of confidence could result in issues with ETFs or banks lacking liquidity, posing a risk of collapse.
Despite his warnings, ETFs have surged in popularity. More investors are eager to get into cryptocurrencies and precious metals without having to manage safes or refrigerated wallets.
Several spot Bitcoin ETFs launched in the U.S. this year regularly trade stocks worth billions. However, Kiyosaki believes this convenience comes with a major drawback: investors are essentially purchasing a claim rather than the actual assets.
On the other hand, ETF specialists like Bloomberg’s senior analyst Eric Barkunas think such concerns are exaggerated. He remarked to Cointelegraph that these ETFs are governed by strict safety protocols and laws separating the issuer from the custodian.
He said:
“All shares in the ETF are connected to actual Bitcoin. This is one ratio and there are no papers.”
Barkunas acknowledged that the crypto community often expresses skepticism toward traditional funding, yet pointed out that the ETF sector has maintained a positive reputation for 30 years.
He added that affluent Bitcoin investors might actually find ETFs to be secure, as individual ownership can be vulnerable to theft and ransom demands. Moreover, the costs of storing physical gold and silver can be prohibitive for many retail investors, which makes regulated funds a more viable option.
This discussion highlights the ongoing tension between advocates of decentralized assets and those aligned with traditional finance. Products like the Spot Bitcoin ETF have attracted billions in investment and broadened access to digital assets, but skeptics like Kiyosaki maintain that personal ownership holds more value, particularly in tumultuous times.
