Robert Kiyosaki warns of the risk posed by BTC, gold and silver ETFs

Investor and fiscal pedagogue Robert Kiyosaki warned of the imaginable information from holding insubstantial Bitcoin (BTC) and precious metals done instruments specified arsenic exchange-traded funds (ETFs).

Kiyosaki said that though ETFs marque definite plus classes more accessible to investors and little the obstruction to entry, the capitalist does not physically clasp the underlying asset. He wrote connected Friday:

“An ETF is similar having a representation of a weapon for idiosyncratic defense. Sometimes it’s champion to person existent gold, silver, Bitcoin, and a gun. Know the differences erstwhile it is champion to person existent and erstwhile it’s champion to person paper.” 

In May, helium told investors to ditch “fake money” for bearer assets similar BTC, golden and metallic to counteract the effects of ostentation and the decline of the US dollar.

Source: Robert Kiyosaki

Kiyosaki’s comments bespeak the age-old occupation of fiscal institutions issuing insubstantial claims connected hard assets they purport to clasp but whitethorn not really person arsenic liquid assets. 

However, erstwhile assurance successful the instauration is shaken, whether owed to rumors, a fiscal daze oregon grounds of insolvency, investors whitethorn unreserved to retreat their wealth each astatine once. This abrupt surge successful withdrawals is known arsenic bank run. If the instauration lacks capable liquid reserves to conscionable these demands, it tin rapidly spiral into a crisis, perchance resulting successful collapse.

Related: ‘Rich Dad, Poor Dad’ writer warns Bitcoin ‘bubble’ could burst soon

ETFs person a agelong way grounds of integrity, concerns are unjustified, ETF expert says

Senior Bloomberg ETF expert Eric Balchunas told Cointelegraph that ETFs person immoderate of the astir robust information guarantees against this benignant of fraud owed to the segregation betwixt ETF issuers and custodians holding the underlying assets.

“ETFs legally person to enactment the assets successful with the custodian. So, each the shares of the ETF are connected to existent Bitcoin; it's a one-for-one ratio, determination is nary paper,” Balchunas said.

“I deliberation successful the crypto world, there's a suspicion with the accepted concern world, and I recognize that,” Balchunas told Cointelegraph. However, the ETF assemblage is simply a “30-year industry, and it's a precise cleanable manufacture with a sterling reputation,” helium said.

Balchunas said ETFs whitethorn beryllium a safer stake for affluent Bitcoiners, arsenic self-custody could marque them targets of wrench attacks oregon ransom attempts perpetrated by convulsive criminals.

Magazine: Danger signs for Bitcoin arsenic retail abandons it to institutions: Sky Wee