Bitcoin News Today: Kiyosaki Labels Bitcoin Gold Silver ETFs Paper Versions Urges Direct Ownership for Asset Protection

Investor and author Robert Kiyosaki has criticized exchange-traded funds (ETFs) linked to Bitcoin, gold, and silver, labeling them “paper versions” of the physical assets they represent. In a recent commentary, Kiyosaki warned that such instruments—despite making these assets more accessible—fail to provide direct ownership of the underlying commodities, likening ETFs to a “picture of a gun” for self-defense: useful in stable times but ineffective during crises [1]. He emphasized that holding physical gold, silver, or Bitcoin, rather than derivative claims, is essential for true asset protection.

Kiyosaki’s stance aligns with his long-standing advocacy for “bearer assets” as a hedge against inflation and a declining U.S. dollar. He argued that paper-based claims on hard assets could lose value if the issuing institution lacks sufficient reserves, potentially triggering a collapse during a liquidity crisis. The author has previously advised followers to abandon fiat currency and prioritize tangible assets like Bitcoin and precious metals [1].

The debate highlights broader tensions between traditional finance and decentralized asset proponents. While spot Bitcoin ETFs have gained traction in the U.S., enabling billions in trading volumes, critics like Kiyosaki contend that investors are purchasing claims rather than the assets themselves. This critique extends to gold and silver ETFs, which similarly abstract ownership from physical possession.

Bloomberg analyst Eric Balchunas, however, dismissed such concerns as unfounded. He noted that ETFs operate under strict safeguards, including legal separation between issuers and custodians, ensuring that shares are backed by actual Bitcoin in a one-to-one ratio [1]. Balchunas acknowledged crypto’s inherent skepticism toward traditional finance but pointed to the ETF sector’s 30-year track record of reliability. He also highlighted that self-custody of Bitcoin exposes wealthy holders to theft risks, while physical gold and silver incur storage costs impractical for most retail investors. Regulated funds, he argued, offer a more secure and practical alternative.

The clash underscores diverging priorities in asset management. Kiyosaki prioritizes direct ownership for crisis resilience, while Balchunas emphasizes the security and efficiency of institutional structures. As ETFs continue to democratize access to digital and physical assets, the debate reflects deeper questions about trust, liquidity, and the role of intermediaries in modern finance.

Source: [1] [Robert Kiyosaki slams ETFs for being ‘paper versions’ of Bitcoin, gold and silver] [https://cryptoslate.com/robert-kiyosaki-slams-etfs-for-being-paper-versions-of-bitcoin-gold-and-silver/]