Financial author Robert Kiyosaki has issued a caution against investing in Bitcoin and precious metals exchange-traded funds (ETFs), expressing concerns over their reliability as asset custodians.
Industry professionals counter that ETFs operate within robust legal and operational frameworks, featuring strict one-for-one asset backing ratios that ensure transparency and compliance with regulatory standards. These structures mitigate counterparty risks while offering regulated trading platforms for enhanced security.
Experts emphasize ETFs provide superior liquidity and accessibility compared to physical asset ownership, sidestepping vulnerabilities like hacking or private key loss inherent in self-custody solutions. With a proven 30-year market track record and strong regulatory oversight, ETFs offer a balanced approach for portfolio diversification.
Investors are advised to evaluate their risk tolerance and financial objectives when considering ETF investments versus direct asset ownership, weighing institutional-grade safeguards against personal custody responsibilities.