Robert Kiyosaki Says BTC ETFs are Fake Bitcoins; Here’s Why

Robert Kiyosaki, author of the bestselling book Rich Dad Poor Dad, has shared his views regarding the spot Bitcoin ETFs. In a June 27 Twitter post, the millionaire entrepreneur labeled Bitcoin ETFs as fake assets, comparing them to “Fake gold and silver ETFs.”

These remarks come amid growing interest in crypto ETFs and recent massive outflows from Bitcoin ETFs in the United States. Kiyosaki’s statements have raised questions regarding the credibility and long-term value of Bitcoin ETFs and related products in the crypto market.

Why Kiyosaki Calls Bitcoin ETFs Fake?

Known for his bullish stance on Bitcoin investment, Kiyosaki criticized BTC ETFs, calling them fake investments. Notably, his opinion about Bitcoin ETFs hinges on a broader disapproval of ETFs, whether Gold, Silver, or other commodities.

Part of his post reads: “Q: What’s wrong with ETF? A: ETFs are FAKE gold, silver, or Bitcoin.”

The renowned investor asserts that ETFs are a fake representation of the actual asset, whether Bitcoin, gold, or silver. He believes such investment vehicles are detached from the actual asset, noting that he will not invest in gold, silver, or BTC ETFs. 

In his argument, Kiyosaki cited an instance where a Gold ETF will sell 1 ounce of gold 100 times through 1 ETF. Kiyosaki says that such a scenario is why he only buys real Bitcoin, gold, and silver, and he never spares a look at ETFs.

Further, he noted that buying the actual assets enables him to keep them safe, avoiding third-party influences from banks and Wall Street brokers. This statement suggests that Kiyosaki prefers physical asset ownership to digital or paper claims. 

Moreover, he believes owning the actual asset, whether gold, Bitcoin, or silver, is more secure and gives more value than purchasing ETF products. This could mean that the issuers may manipulate gold, silver, and BTC ETFs, or influence from the financial system might dilute their value.

While many see ETFs as a means of gaining exposure to Bitcoin and a gateway to broader crypto adoption, Kiyosaki dismisses them as investments with no intrinsic value.

Bitcoin ETF Market Outlook 

These comments come amid heightened activity in the US spot BTC ETF market. Despite the recent massive outflows, market data shows slight improvement, with three consecutive days of positive net inflow streaks of $31 million, $21.4 million, and $11.8 million on June 25, 26, and 27, respectively. 

Data from Farside Investors shows the Bitcoin ETFs recorded $11.8 million in net inflows on June 27. Bitwise Bitcoin ETF (BITB) led the flows with $8.0 million in inflow as of June 27, while Fidelity’s FBTC followed with $6.7 million. 

BlackRock’s IBIT recorded zero inflows, Ark Invest’s ARKB saw $1.8 million in inflows, Invesco Galaxy’s BTCO received $3.1 million, and Franklin’s EZBC received $3.6 million. 

Conversely, Grayscale’s GBTC continued its steady outflow streak, with $11.4 million withdrawn from the ETF on June 27.

On the other hand, Hong Kong ETFs witnessed net outflows of 499.98 BTC on June 26. However, they recorded positive flows of 57.57 BTC on June 27. Most of the inflow came from China AMC, which added $47.81 BTC, Harvest got only 9.76 BTC, and Bosera & Hashkey saw zero inflows.