Kiyosaki likened ETFs to having only a “picture of a gun” for self‑defense, useful in good times but useless in a crisis. He said ETFs make assets such as Bitcoin and bullion more accessible to everyday investors, but they don’t give investors physical possession of the underlying commodity.
He wrote:
“Sometimes it’s best to have real gold, silver, Bitcoin, and a gun.”
Kiyosaki’s skepticism isn’t new, he has previously told his followers to ditch “fake money,” meaning fiat currency, and turn to bearer assets like Bitcoin, gold and silver as a hedge against inflation and a weakening U.S. dollar.
He argued that paper claims on hard assets can become worthless if the institution issuing them fails to hold enough reserves. He added that a crisis of confidence can trigger a run on an ETF or bank that doesn’t have sufficient liquidity, risking collapse.
ETFs have exploded in popularity as more investors seek exposure to cryptocurrencies and precious metals without dealing with cold‑storage wallets or vaults.
However, ETF experts like senior Bloomberg analyst Eric Balchunas believe such fears are unfounded. He told CoinTelegraph that ETFs are subject to strict safeguards and legal separation between issuers and custodians
He said:
“All the shares of the ETF are connected to actual Bitcoin; it’s a one‑for‑one ratio, there is no paper.”
Balchunas acknowledged that the crypto community is often suspicious of traditional finance, but noted the ETF sector has operated for 30 years with “a sterling reputation.”
Balchunas said that wealthy Bitcoin holders might actually be safer using ETFs, because self‑custody can make them targets for theft and ransom schemes. He added that physical gold and silver also carry storage and security costs that many retail investors can’t afford, and a regulated fund might be the better bet for them.
The debate highlights a broader tension between advocates of decentralized assets and the traditional financial system. While products like spot Bitcoin ETFs have brought billions in inflows and opened digital assets to a wider audience, skeptics such as Kiyosaki believe nothing beats personal possession in a crisis.
