Bitcoin News Today: Kiyosaki Warns ETFs Offer Fake Ownership of Bitcoin Gold Silver Backed by Paper Contracts

Robert Kiyosaki, author of Rich Dad Poor Dad, has sparked debate by warning investors that ETFs tracking Bitcoin, gold, and silver represent "fake ownership" of these assets. In a recent critique, Kiyosaki argues that such ETFs function as "paper versions" rather than tangible holdings, leaving investors exposed during financial crises. He likens ETFs to "a picture of a gun" in times when real assets are needed for security. "You don’t own the Bitcoin, gold, or silver—just a contract that tracks it," Kiyosaki emphasized, advocating instead for direct ownership of physical assets or cryptocurrencies [1].

At the core of Kiyosaki’s argument is the risk of counterparty dependence. Investors in ETFs rely on fund managers to accurately back the fund with the actual asset, creating a vulnerability if the issuer defaults or faces regulatory changes. "Direct ownership eliminates this risk," he stated, stressing that physical gold bars, silver coins, or self-custodied Bitcoin wallets offer irreplaceable control [1]. His critique extends to Bitcoin ETFs specifically, noting that governments could regulate or ban such products, impacting ETF holders but not individuals who own Bitcoin directly. "Owning Bitcoin means having your wealth in your own hands," Kiyosaki added, underscoring the importance of self-custody in the crypto space [1].

The debate over ETFs versus physical assets remains contentious. While ETFs offer convenience and liquidity, Kiyosaki warns that they may lose value or become illiquid during crises. Historical precedents of financial instability, he argues, highlight the limitations of paper claims. For example, an ETF backed by gold might fail to deliver bullion during a market crash, whereas physical ownership ensures immediate access to the asset [1]. His stance aligns with a broader skepticism of intermediaries in finance, a theme central to his investment philosophy.

Kiyosaki’s warnings have drawn attention to the structural risks of ETFs. Critics like him argue that investors must prioritize tangible assets for true financial security. This perspective challenges the growing popularity of ETFs in crypto and precious metals markets. For instance, Bitcoin’s price reaching $118,693 in July 2025 (with a 0.36% 24-hour gain) underscores the asset’s volatility, which ETFs may not fully hedge against if they lack direct backing [1]. Kiyosaki’s message is clear: in uncertain times, control over assets is paramount.

The implications for crypto investors are significant. As regulatory landscapes evolve, ETFs—despite their ease of use—could face restrictions that leave holders at a disadvantage. By contrast, direct ownership ensures independence from third-party decisions. Kiyosaki’s critique also raises questions about trust in financial institutions, reinforcing his longstanding advocacy for self-directed wealth management.

In conclusion, Kiyosaki’s remarks serve as a cautionary note for investors relying on ETFs as a proxy for real assets. While these vehicles simplify access to markets, they do not confer the same level of security as physical ownership. His emphasis on self-custody and tangible assets aligns with a defensive investment strategy, particularly in volatile sectors like cryptocurrency and precious metals. As markets continue to evolve, the debate over ETFs’ role in wealth preservation is likely to intensify.

Source: [1] [title] [url]

[1] [title] [https://coinmarketcap.com/community/articles/6887a327fb9c334040026069/]