Thomas Daniels
Investor and best-selling author Robert Kiyosaki has issued a stark warning about the perceived risks associated with holding Bitcoin, gold, and silver through exchange-traded funds (ETFs), calling into question the reliability of paper-based investment vehicles in the face of economic uncertainty.
In a recent statement, Kiyosaki drew a sharp distinction between owning physical assets and relying on financial instruments that claim to represent them. “An ETF is like having a picture of a gun for personal defense,” he 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.”
His comments reflect broader concerns about financial institutions that issue paper claims on hard assets without maintaining adequate reserves. This practice, historically associated with banking crises, risks triggering a bank run should investor confidence falter due to rumors, financial shocks, or evidence of insolvency.
In May, Kiyosaki reiterated his preference for tangible assets, urging investors to abandon “fake money” in favor of bearer instruments like Bitcoin (BTC), physical gold, and silver, which he believes offer a hedge against inflation and the ongoing devaluation of the U.S. dollar.
However, experts within the ETF industry argue that these concerns are largely unfounded—particularly when applied to modern ETFs backed by digital and physical assets. Eric Balchunas, Senior ETF Analyst at Bloomberg, told Cointelegraph that ETFs are among the most regulated and secure financial instruments available.
“ETFs legally have to put the assets in with the custodian. So, all the shares of the ETF are connected to actual Bitcoin; it’s a one-for-one ratio. There is no paper,” Balchunas emphasized.
He acknowledged that skepticism toward traditional finance persists within the crypto community but defended the integrity of the ETF market. “The ETF sector is a 30-year industry with a sterling reputation. It’s a very clean industry,” Balchunas added.
Moreover, he suggested that ETFs may offer safer exposure for high-net-worth individuals concerned about self-custody, which could expose them to physical threats such as ransom or wrench attacks.
