Robert Kiyosaki, the author of Rich Dad Poor Dad, has issued a fresh warning to investors about owning Bitcoin and precious metals through exchange-traded funds (ETFs).
In a tweet, he explained that while ETFs help people access assets more easily, they don’t provide true ownership. “An ETF is like having a picture of a gun for personal defense,” Kiyosaki wrote. “Sometimes it’s best to have real gold, silver, Bitcoin, and a gun. Know the differences when it is best to have real and when it’s best to have paper.”
Kiyosaki’s comments echo past warnings where he told investors to move away from what he calls “fake money” and instead choose physical assets like gold, silver, and Bitcoin. He believes this shift is important as the US dollar loses value and inflation continues to grow.
He also raised the issue of trust in financial systems. According to him, institutions that offer ETFs may not always have the real assets to back what they sell. This, he suggests, can lead to panic if people try to withdraw their funds at the same time. Such situations, known as a “bank run,” can create a fast-moving financial crisis.
However, not everyone agrees with Robert. Eric Balchunas, a senior ETF analyst at Bloomberg, responded to Kiyosaki’s warning. He said that modern ETFs are built with strong safeguards.
“ETFs legally have to put the assets in with the custodian,” Balchunas said in a statement. “So, all the shares of the ETF are connected to actual Bitcoin; it’s a one-for-one ratio, there is no paper.”
Balchunas added that the ETF industry has a 30-year reputation for clean operations. He also noted that holding Bitcoin through ETFs could actually protect wealthy investors from physical threats, like theft or ransom attacks.
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