Investor and “Rich Dad Poor Dad” author Robert Kiyosaki warned investors to beware of holding Bitcoin (BTC), gold and silver through exchange‑traded funds, saying those paper‑based instruments are no substitute for the real thing.

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.

Several spot Bitcoin ETFs, introduced in the US this year, regularly trade billions of dollars’ worth of shares. But that convenience comes at a cost, Kiyosaki contends: you are buying a claim, not the asset itself.

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.

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Today, BlackRock Robert Mitchnick’s digital assets director at Bloomberg ETF IQ spoke about what is actually driving the surge in Bitcoin ETFs.

“It’s a lot of stuff coming in. Outside the gate was retail and investor demand…” Mitchinick said. “We’ve seen stable progress recently in adopting more wealth advisors, more institutional adoption. It’s a mixture of people who are new to invest in everything in the crypto sector, and there are a lot of people who have been invested in Bitcoin for a long time.

When it comes to institutional adoption, Mitchinick says we’re still too early. ETF approvals usually take years, but some companies are tracking the process quickly.

“We’ve seen them being tracked quickly by a lot of companies, and we’re talking about fast tracking,” Mitchinick said. “We’re talking about quarters, not months, and I think slowly and certainly, you’ve seen you give your advisors approval to use these, especially in the months of companies that are more prominent than lowering obstacles.”

Bitcoin volatility has recently declined, making it even more attractive to institutions seeking diversification. However, while remaining unstable, the risk and return profile differs from traditional assets.

“It’s definitely a relatively new technology,” commented Mitchinick. “The volatility is declining, but it is still unstable, but at the same time its risk and return drivers are significantly different from most of the remaining assets in the traditional portfolio, and that is important.

Currently, around 12 Bitcoin ETFs compete in the market, and demand remains strong.

“Well, a lot of them are very successful, you know,” Mitchinick said. “Obviously, it was a category leader with a considerable margin. But as you know, it’s exciting, there’s a lot of product in the space, and that’s a good thing.”