Financial educator Robert Kiyosaki has issued a stark warning about the hidden dangers of holding Bitcoin and precious metals through exchange-traded funds (ETFs). The "Rich Dad Poor Dad" author compares ETF ownership to carrying a photograph of a weapon for protection —— suggesting physical possession of assets remains crucial in turbulent markets.

The Paper Asset Paradox

While ETFs democratize access to hard assets like Bitcoin and precious metals, Kiyosaki argues they create dangerous abstraction layers. "An ETF is like having a picture of a gun for personal defense," he stated on social media platform X. The investor's concerns echo historical instances where financial institutions failed to maintain adequate reserves against paper claims.

Recent data shows global ETF assets under management surpassed 【$11 trillion】 in 2025, with crypto and commodity products capturing increasing market share. Yet Kiyosaki maintains this growth masks fundamental risks —— particularly when multiple investors attempt simultaneous physical redemption.

Institutional Pushback Against Custody Concerns

Bloomberg's senior ETF analyst Eric Balchunas counters these warnings, highlighting structural safeguards. "ETFs legally mandate one-to-one asset backing with segregated custodians," he told Cointelegraph. The analyst points to the industry's 30-year track record with precious metal ETFs as evidence of operational integrity.

Interestingly, Balchunas raises an unconventional counterargument —— for high-net-worth individuals, ETF custody might actually reduce physical security risks. The analyst references rising incidents of 【violent crypto thefts】 targeting self-custody holders as justification for institutional storage solutions.

The Bearer Asset Debate Intensifies

This controversy emerges amid Kiyosaki's ongoing campaign advocating direct ownership of inflation-resistant assets. Earlier this year, he urged investors to abandon "fake money" systems for tangible stores of value —— a position gaining traction as the U.S. dollar shows signs of weakening global dominance.

Market analysts note the timing coincides with increased regulatory scrutiny of crypto custodians. Recent filings show spot Bitcoin ETF providers now undergo 【quarterly audits】 of their reserve holdings —— a transparency measure absent in traditional commodity markets.

——The fundamental question remains: In an era of digital abstraction, does true wealth still require physical possession?—— As this debate unfolds, investors face increasingly complex decisions about asset custody in volatile markets.