Investor and “Wealthy Dad Poor Dad” writer Robert Kiyosaki warned traders to watch out for holding Bitcoin (BTC), gold and silver by means of change‑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 occasions however ineffective in a disaster. He mentioned ETFs make property resembling 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 advised his followers to ditch “pretend cash,” that 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 arduous 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 ample liquidity, risking collapse.
ETFs have exploded in reputation as extra traders 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 12 months, often commerce billions of {dollars}’ price of shares. However that comfort comes at a price, 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 advised 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 a paper.”
Balchunas acknowledged that the crypto group is usually suspicious of conventional finance, however famous the ETF sector has operated for 30 years with “a sterling fame.”
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 could be the higher wager for them.
The controversy 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 resembling Kiyosaki consider nothing beats private possession in a disaster.