Bitcoin News Today: Kiyosaki Warns ETFs Fail to Protect in Crisis Urges Real Assets

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Saturday, Jul 26, 2025 6:15 am ET2min read
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- Robert Kiyosaki warns ETFs lack crisis-proof security of physical assets like gold, silver, and Bitcoin, calling them "paper" representations.

- U.S. spot Bitcoin ETFs saw $130M net inflows as BlackRock’s IBIT and Fidelity’s FBTC led demand for digital assets.

- ETF proponents argue custodied assets offer safety for non-experts, while Kiyosaki stresses direct ownership for unambiguous control.

- His advocacy highlights growing investor focus on financial sovereignty amid fiat devaluation risks and geopolitical instability.

- The debate intensifies as new ETFs emerge, forcing investors to weigh convenience against crisis resilience in asset allocation.

Investor and financial commentator Robert Kiyosaki has reiterated his cautionary stance on exchange-traded funds (ETFs), emphasizing that they lack the tangible security of physical assets such as gold, silver, and BitcoinBTC-- during financial crises. Across multiple statements in July 2025, Kiyosaki described ETFs as "paper" representations of real assets, arguing they do not confer direct ownership or control necessary for true financial protection [1]. He likened investing in ETFs to "having a picture of a gun for self-defense"—useful in stable conditions but ineffective during systemic collapses [2].

Kiyosaki’s critique centers on the reliance ETFs place on intermediaries, custodians, and financial systems that could falter during downturns. "In a crisis, paper will not protect you," he warned, stressing that real assets are the only reliable safeguard [3]. His philosophy aligns with a broader focus on financial sovereignty, advocating for direct ownership and self-custody to mitigate risks from market volatility or geopolitical instability [4]. While acknowledging ETFs as accessible tools for average investors, he urged caution, stating, "Know your differences when it is best to have real and when it is best to have paper" [5].

The debate over ETFs gained momentum as U.S. spot Bitcoin ETFs attracted $130 million in net inflows on Friday, reversing a three-day outflow trend. Leading products such as BlackRock’s IBIT ($92.83 million) and Fidelity’s FBTC ($10.19 million) drove the surge, reflecting growing demand for digital assets [6]. EthereumETH-- ETFs also saw $452.72 million in inflows during the same period. Proponents of ETFs, including Bloomberg’s senior ETF analyst Eric Balchunas, argue these products are backed one-to-one by assets and stored securely with custodians, offering a level of safety for investors who lack expertise in cold storage [7]. Balchunas countered Kiyosaki’s claims, noting that physical assets like gold and Bitcoin carry their own risks, such as theft or loss [8].

The tension between convenience and control in investing remains unresolved. ETFs provide liquidity and ease of access, yet Kiyosaki insists that direct ownership of real assets—whether physical gold, Bitcoin, or silver—offers unambiguous security. For instance, a Bitcoin ETF participant relies on third-party custodians, whereas self-custody ensures immediate, unencumbered access [9]. His advocacy for physical assets aligns with concerns over the devaluation of fiat currencies, which he labels as "fake currency" [10].

As more firms, including politically aligned entities like Trump-backed Truth Social, seek to launch ETFs, the debate between "paper claims" and "real assets" is expected to intensify. Kiyosaki’s warnings underscore a fundamental question for investors: whether the ease of ETFs justifies their limitations in times of crisis. His position highlights a broader shift in investor priorities, where long-term stability increasingly outweighs short-term convenience [11].

Source: [1] [An ETF is like having a picture of a gun for self-defense](https://m.economictimes.com/markets/stocks/news/an-etf-is-like-having-a-picture-of-a-gun-for-self-defense-says-rich-dad-poor-dad-author-robert-kiyosaki/articleshow/122902112.cms) [2] [Robert Kiyosaki Warns: ETFs Are Just 'Pictures of a Gun'](https://coincentral.com/robert-kiyosaki-warns-etfs-are-just-pictures-of-a-gun-why-he-still-prefers-real-gold-and-bitcoin/) [3] [Robert Kiyosaki Warns of the risk posed by BTC, gold and ...](https://cointelegraph.com/news/robert-kiyosaki-warns-risk-paper-btc-gold-silver) [4] [Bitcoin News Today: Robert Kiyosaki Warns Crypto ETFs ...](https://www.ainvest.com/news/bitcoin-news-today-robert-kiyosaki-warns-crypto-etfs-dangerous-illusion-advocates-direct-ownership-bitcoin-gold-2507/) [5] [Robert Kiyosaki slams ETFs for being 'paper versions' of ...](https://cryptoslate.com/robert-kiyosaki-slams-etfs-for-being-paper-versions-of-bitcoin-gold-and-silver/) [6] [Robert Kiyosaki on ETFs: Real Assets Offer True Safety](https://coinmarketcap.com/community/articles/6884a43c3dde927899ed55db/) [7] [Bloomberg ETF Analysis](https://www.bloomberg.com/) [8] [ETF Experts Defend Safety](https://www.bloomberg.com/) [9] [Bitcoin ETFs are Just Paper, Not Real Power: Kiyosaki](https://coinedition.com/kiyosaki-urges-investors-to-prioritize-real-bitcoin-over-paper-claims/) [10] [Financial expert Robert Kiyosaki warns about the dangers ...](https://www.arabictrader.com/en/news/cryptocurrencies/190079/financial-expert-robert-kiyosaki-warns-about-the-dangers-of-exchange-traded-funds) [11] [ETF or Real Bitcoin? 'Rich Dad Poor Dad' Author Kiyosaki ...](https://u.today/etf-or-real-bitcoin-rich-dad-poor-dad-author-kiyosaki-ends-speculation)

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