It is better to have real bitcoin, explains Kiyosaki.
“If you know the difference, it is better than the average,” explains the author.
Robert Kiyosaki, author of the book Rich father, poor fatherhe warned about the risks of trusting exclusively in the funds quoted in the stock market (ETF) as a way to invest in Bitcoin.
Although recognize that these instruments can facilitate access to the market for the average investor (of course, which refers to the one that has access to a stock market broker with access to financial instruments in the United States), The author explains something that Bitcoiners knows well: having actions of an ETF does not equal the physical and direct possession of Bitcoin.
“An ETF is like having the image of a weapon for personal defense,” Kiyosaki wrote. In his opinion, there are times when it is better to have the physical good, whether gold, silver, bitcoin or even a real weapon.
And while not opposing ETFs as an entry mechanism, it emphasizes that it is essential that investors understand the difference between a derived product and the underlying asset.
The Bitcoin ETFs, which are negotiated in the American stock exchange since January 2024, have been one of the most successful financial products of the last decade, considering that the institutional investment in favor of these vehicles has been massive, as reported cryptootics.
Currently, the net assets of the Bitcoin ETFs They exceed the USD 154,000 million. Measured in BTC, there are more than 1.23 million bitcoin managed by the issuing of these financial products, equivalent to just over 6.5% of BTC’s total supply.
The 154,000 million dollars figure is important because it reflects the degree of institutional adoption and legitimation of Bitcoin within the traditional financial system. In addition, it indicates that large amounts of capital, from institutional investors, pension funds and retailers, are choosing to expose themselves to Bitcoin through regulated and accessible vehicles.
With a market capitalization of 3.78 billion dollars for Bitcoin, the 154,000 million dollars managed by ETFs represent about 4% of the total value of this asset. This indicates that, although the quantity channeled through quoted funds is significant, There is still a wide margin of growth in institutional adoption through these instruments.
The figure also suggests that most of the circulating bitcoin remains outside the traditional stock market financial system, in the hands of individual users, exchange platforms, private custodians or corporate reserves.
What differences are there?
Now, the distinction referred to Kiyosaki has key implications. In the case of real bitcoin, the user maintains total control of the asset through their private keys. This eliminates the risk of counterpart, since it does not depend on financial intermediaries to access or protect your investment.
In contrast, Bitcoin ETFs involve the participation of custodians, exchanges and emitters, which introduces possible risks of bankruptcy, insolvency or inadequate management.
The difference is also in the operational and regulatory aspect of these instruments. ETFs are subject to surveillance and reports by financial intermediaries. Any operation through a broker is registered, And in many cases, authorities can request access to this information. On the contrary, Bitcoin’s direct possession, if performed with good privacy practices, can preserve a greater degree of financial autonomy.
In addition, there are differences in the economic exposure offered by each form of investment. When bitcoin is acquired directly, The investor obtains full exhibition to the movement of its pricewithout intermediate charges.
Instead, Bitcoin ETFs charge management commissions that are discounted from the value investedwhich directly impacts the final profitability. When the price of Bitcoin rises, the ETF performance also increases, but the net investor gain will be slightly lower due to that cost. On the other hand, if the price falls, the losses are amplified because in addition to the fall in the value of the asset, the commission must be assumed.
Unlike having bitcoin directly, where there is no manager that charges for their custody, ETFs generate a constant expense that affects the financial result in any scenario.
Kiyosaki’s phrase “If you know the difference, you are better than the average” summarizes the author’s main message. For the writer, who believes that BTC will arrive at USD 200,000 this year, education financial implies understanding not only what is bought, but how it is accessed and what type of risks are assumed in each case.
Clearly, having a Bitcoin ETF is not the same as having bitcoin. This is, in essence, a financial instrument that reflects its price, but does not grant direct property of the asset.
Therefore, although ETFs can have a functional role within a broader investment strategy, they should not be seen as Bitcoin substitutes. In extreme situations, such as economic crises or bank access restrictions, Direct control over resources can be the difference.
“Know the differences when it is better to have real material and when it is better to have paper,” says Kiyosaki.
