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Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad, has again expressed his distrust of conventional financial products—this time in the form of Bitcoin ETFs. In a recent comment, he called Bitcoin ETFs “fake” and advised investors to go for physical possessions such as gold, silver, and Bitcoin itself.
Why Kiyosaki Opposes Bitcoin ETFs
Kiyosaki contends that Bitcoin ETFs, similar to other exchange-traded funds, are controlled by Wall Street institutions, which he considers part of a defective and manipulated financial system. He considers that ETFs do not guarantee actual ownership of Bitcoin, putting investors at risk of counterparty risks and possible financial instability.
“If you don’t hold it, you don’t own it,” Kiyosaki has repeatedly stated when it comes to gold and silver. He applies the same principle to Bitcoin, with a focus on holding physical Bitcoin instead of using ETFs or third-party custodians.
The Case for Direct Ownership
Kiyosaki’s investment philosophy is one of financial independence and autonomy. He cautions that financial crises and bank failures can risk ETF investors because their investments are based on the financial institutions, not under their control. Investors can protect themselves from possible system failures by owning Bitcoin directly—in private wallets.
Bitcoin ETFs: Convenience vs. Control
Though Bitcoin ETFs are an accessible means for mainstream investors to get exposure to Bitcoin without having to manage private keys or wallets, they are not without compromises. ETF investors do not have ownership of the underlying asset but rather hold shares in a fund that replicates the price of Bitcoin. That difference makes a significant impact on those who, such as Kiyosaki, view Bitcoin as a hedge against economic uncertainty instead of a simple investment.
Kiyosaki’s approach towards Bitcoin ETFs is reflective of his larger approach towards financial learning and financial freedom. Even as ETFs could be convenient, they cannot assure the same sense of protection and agency that outright possession of Bitcoin does. To investors concerned as he is with the banking system, ownership of Bitcoin alone will still be the way forward.
Are you on board with Kiyosaki’s commentary about Bitcoin ETFs? Let us know in the comments
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