The analyst expressed that he will never place capital in these investment instruments indexed to the spot price of the largest cryptocurrency.
Investor and popular author Robert Kiyosaki recently expressed his disdain for the US stock market’s Bitcoin spot ETFs. In his opinion, these assets are part of the group of equities that will collapse in the midst of the next crash that will cause financial chaos. The author of the best-selling book, Rich Dad, Poor Dad, is completely convinced that the financial world will suffer a total collapse.
In a scenario in which the 1929 crisis will remain in its infancy, buying variable income assets is absurd, according to the expert. It is worth mentioning that although these ETFs are pegged to Bitcoin, investors simply have exposure to the currency and not possession. In simple words, the coins are from the firm offering the ETF, while investors have shares that represent the asset itself.
During a possible financial collapse scenario, the companies that issue those ETFs could withhold users’ funds. Instead of investing in these products, the analyst recommends purchasing BTC directly on an exchange and then sending it to a cold or self-custody wallet.
Bitcoin ETFs Are Good Only for Institutions, Says Kiyosaki
In a post on his X account, Kiyosaki highlighted that Bitcoin ETFs are likely good for institutional investors. However, he emphasizes that entrepreneurs should stay away from Wall Street products as much as possible:
“Q: Will you buy the Bitcoin ETF?
A: No. Just as I own gold and silver coin and mines and own apartment houses I do not own gold or silver ETFs or REITS, real estate ETFS. ETFs are best for most people and institutions. Personally I am an entrepreneur and prefer to stay as far away from Wall Street’s financial products as possible (…)”
He stated that under no circumstances does he own metals or housing ETFs. He does the exact same thing with his Bitcoin investments. “Packaging my own financial products is best for me because packaging my own securities requires me to be smarter than most ETF buyers. It is what is best for me. If I F’ up I have no one to blame but me,” he argued.
For years, this analyst has been a promoter of investments in assets, mainly reserve assets, instead of risky stocks. Although the latter cannot be ruled out, they must at least be carried out by taking the corresponding measures in terms of risk management.
Thus, the purchase of Bitcoin ETFs should be discarded in favor of self-custody, suggests Kiyosaki. In the case of BTC, when it is held in its own custody, it cannot be seized by the authorities, as could happen with homes. In the event of a financial implosion like the one the author expects, those who own assets of their own, specifically BTC, will be fully protected.
Kiyosaki’s Optimism Towards Bitcoin
Kiyosaki’s stance on Bitcoin ETFs comes amid a bullish outlook on the world’s leading cryptocurrency. In January, he predicted that the value of Bitcoin would rise to $150,000. He also revealed his purchase of 5 additional Bitcoin, valued at over $230,000 at the time of the spot ETFs approval.
Despite his bullish stance on Bitcoin, Kiyosaki’s latest tweet suggests a preference for direct asset ownership, distancing himself from Wall Street financial products.
Interestingly, Kiyosaki agrees with Ark Invest CEO Cathie Wood’s $2.3 million prediction for Bitcoin, advocating for bold investment approaches. He said: “Kathie Wood is very intelligent. I trust her opinion.”
By Audy Castaneda
