Book author Robert Kiyosaki Rich father, poor fatherhe warned of the risk of trusting only with funds cited in the Stock Market (ETF) as a way to invest in Bitcoin.
We recognize that these devices can encourage the average investor’s access to the market (which refers to those that have access to equity brokers who have access to financial products in the US), The author explains what Bitcoiners knows well. Taking ETF action is not comparable to the physical and direct ownership of Bitcoin.
“ETFs are like having the image of weapons for personal defense,” Kiyosaki writes. In his opinion, it may be better to have physical good, such as gold, silver, bitcoin, or a real weapon.
Although they do not oppose ETFs as an entry mechanism, they emphasize that it is essential for investors to understand the difference between derivative products and underlying assets.
Bitcoin ETF, negotiated on the US Stock Exchange since January 2024, has been one of the most successful financial products of the past decade. Given the large-scale institutional investments supporting these vehicles, Similar to reported encryption.
Currently, Bitcoin ETFs have a net worth of over USD 154,000 million. There is over 1.23 million Bitcoins managed by the issuance of these financial instruments, measured by BTC. It represents only 6.5% of the total supply of BTC.
The $150 million figure is important as it reflects the degree of institutional adoption and legalization of Bitcoin within the traditional financial system. It also shows that large amounts of capital from institutional investors, pension funds and retailers are choosing to be exposed to Bitcoin through regulated, accessible vehicles.
Bitcoin’s market capitalization is $3.78 billion, with $150 million managed by the ETF making up about 4% of the total amount of this asset. This indicates that the quantities channeled through the funds quoted are important; Through these devices, there is still a significant growth margin for institutional adoption.
The figures also suggest that most circular Bitcoin remains outside the traditional stock market financial system in the hands of individual users, exchange platforms, private managers, or corporate reserves.
What difference is there?
The distinction mentioned at present in Kyonosaki has important implications. In the case of actual Bitcoin, users maintain full control of their assets via their private key. This eliminates the risk of the counterpart. Access or protect your investments is because you don’t rely on financial intermediaries.
In contrast, Bitcoin ETFs include the participation of custodians, exchanges and emitters who introduce the possibility of bankruptcy, bankruptcy or poor management.
The difference is also in the operational and regulatory aspects of these devices. ETFs are subject to monitoring and reporting by financial intermediaries. Any operation is registered through the broker, In many cases, authorities can request access to this information. On the contrary, direct ownership of Bitcoin can maintain more financial autonomy if carried out with good privacy practices.
Furthermore, there are differences in the economic exposure provided by each form of investment. Once Bitcoin is acquired directly, Investors get a full display on their price movementsno interim fees.
Instead, Bitcoin ETFs claim a management board that is discounted from the invested valuewhich directly affects the ultimate profitability. As Bitcoin prices rise, ETF performance also increases, but the cost will result in a slightly lower net investors gain. On the other hand, if prices drop, losses are amplified because the committee must be assumed in addition to the decline in the value of the asset.
Unlike having Bitcoin directly if you don’t have a manager to claim for custody, ETFs generate certain costs that affect the financial outcomes of the scenario.
Summary of the main message of the author’s phrase “If you know the difference, you’re better than average.” Education for writers who believe BTC will arrive at US$200,000 this year Finance means understanding not only what is purchased but how it is accessed And what kind of risks are assumed in each case.
Obviously, having a Bitcoin ETF is not the same as having a Bitcoin. This is essentially a financial product that reflects its price. However, no direct assets are granted.
Therefore, ETFs can play a functional role within a broader investment strategy, but should not be considered a Bitcoin alternative. In extreme situations such as economic crisis and bank access restrictions, Direct control of resources can make a difference.
“When it’s better to have real materials and when it’s better to have paper, know the difference,” says Kiyosaki.