Famous financial author Robert Kiyosaki, best known for his book “Rich Dad Poor Dad,“ has publicly endorsed Bitcoin exchange-traded funds (ETFs). He noted that the financial instrument is a more accessible tool for average investors seeking exposure to the world’s largest crypto asset.
What are Bitcoin ETFs?
A Bitcoin ETF is a traditional investment instrument that lets individuals buy and sell shares tied to Bitcoin’s price without needing to custody the asset directly. These ETFs hold actual BTC in regulated custodial storage and trade like regular stocks on exchanges such as the NYSE or Nasdaq.
Investors benefit from greater accessibility, tax efficiency, and regulatory oversight while avoiding the complexities and risks associated with self-custody. However, they come with limitations such as management fees, potential tracking errors compared to Bitcoin’s real-time price, and a lack of direct ownership.
Kiyosaki’s Subtle ETF Recommendation
In a recent post on X (formerly Twitter), Kiyosaki emphasized that he prefers holding Bitcoin itself as a crypto asset. However, he expressed that he understands ETFs offer a more accessible and convenient option for individuals unfamiliar with the technicalities of self-custody and digital wallets.
However, Kiyosaki believes ETFs can be likened to “a picture of a gun for personal defense,” highlighting the importance of asset ownership during financial stress. He urged the public to recognize when to rely on paper instruments and when to hold real Bitcoin.
Tolling that line, Kiyosaki suggested that actual preparedness lies in knowing how to use each instrument wisely, not merely holding it for the convenience it affords. He further reaffirmed his belief that Bitcoin, gold, and silver are vital hedges against inflation and the devaluation of fiat.
Banks Nod to Bitcoin ETFs
Interestingly, Kiyosaki’s recommendation comes amid growing mainstream acceptance of Bitcoin ETFs. Since their approval by U.S. regulators, they have attracted billions of dollars in institutional inflows. For example, JPMorgan Chase has gradually opened the door to crypto exposure. The bank now allows Bitcoin ETFs to be used as collateral for client loans.
Wells Fargo, another U.S. banking player, has begun offering spot Bitcoin ETFs to its wealth management clients, typically through unsolicited purchases initiated by high-net-worth individuals.
Meanwhile, South Korea’s Financial Supervisory Service (FSS) has recently instructed local asset managers to limit their exposure to U.S.-listed crypto-related securities, even if they are ETFs.
