While many in the cryptocurrency community have been eagerly awaiting the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) as a sign of greater adoption of crypto assets, not everyone involved convinced.

Robert Kiyosaki, the noted investor and author of the best-selling personal finance book “Rich Dad, Poor Dad,” stated that he would not buy Bitcoin through a spot ETF. He mentioned the same reason why he doesn’t own “gold or silver ETFs or REITs,” according to his post from X (formerly Twitter) from April 12.

While he recognizes that “ETFs are best for most people and institutions,” as an entrepreneur he prefers to “stay as far away from Wall Street financial products as possible.” He prefers to take responsibility for his possible mistakes in his own hands:

“Packaging my own financial products is best for me because packaging my own securities requires me to be smarter than most ETF buyers. It’s the best for me. If I make a mistake, I have no one to blame but myself. The more important question is ‘what is best for you.’”

The perception of BTC ETFs by others

Peter Schiff, an American economist, has meanwhile dismissed spot Bitcoin ETFs as one of the reasons why Bitcoin would likely crash. He argues that more investment in the native crypto asset makes the market vulnerable. Schiff even calls ETFs a “gift to foreign central banks” because they take investor demand away from gold.

Schiff also believes that the recent Bitcoin rally, which followed gold’s rise to new all-time highs, was a ploy to “trick ETF investors into buying the gap up.” He advises his followers to “be ready for the dump” by replacing all their Bitcoin with precious metals.

Bitcoin’s price stood at $70,643 at the time of writing, up slightly by 0.06% on the day and up 5.26% over the past week. However, this past month saw a loss of 3.81%, according to the most recent data from April 12.

Whether or not one wants to invest in Bitcoin via a spot BTC ETF depends on the individual preference or organization. While some entrepreneurs like Robert Kiyosaki prefer direct exposure without intermediaries, others opt for the safety of an indirect approach.

Regardless of the positions in this debate, it is essential to do thorough research and conduct a thorough risk analysis before committing a significant portion of the portfolio to any asset, whether it is cryptocurrency, an exchange-traded fund, or anything otherwise.

Source: https://cryptobenelux.com/2024/04/12/r-kiyosaki-deelt-waarom-hij-geen-geld-zal-steken-in-een-bitcoin-etf/

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