Robert Kiyosaki has publicly criticized exchange-traded funds (ETFs), labeling them as investments suited for “losers,” while simultaneously endorsing President Trump’s recent executive order that permits cryptocurrency in U.S. retirement accounts.
This week, Bitcoin ETFs have experienced a significant influx of $552 million, intensifying the ongoing discussion regarding the merits of direct asset ownership versus ETFs as we approach the Federal Reserve’s interest rate decision.
Kiyosaki has reignited his opposition to ETFs, asserting they are an inadequate alternative to owning assets like Bitcoin directly. He believes that only those who are willing to invest time in research and education should engage with cryptocurrencies or alternative investments; casual investors ought to remain with traditional mutual funds instead.
His remarks come at a time when demand for spot Bitcoin ETFs is surging, evidenced by substantial institutional buying despite minor outflows this month. Nevertheless, Kiyosaki maintains his position that he would “never” invest in a Bitcoin ETF.
“ETFs Are for Losers”
Kiyosaki expressed his views on X without reservation:
“As some of you know I do not invest in mutual funds or ETFS. To me Mutual funds and ETFS are for ‘losers.’”
Praise for Trump’s Executive Order
Alongside his critique of ETFs, Kiyosaki commended Donald Trump’s executive order issued on August 7th. This directive allows investors with 401(k) plans to diversify their portfolios into real estate, private equity, precious metals, and cryptocurrencies.
“Trump’s new XO opens the door for ‘smarter’ more ‘sophisticated investors’… I am happy because Trump’s new XO treats investors like ‘adults’ and makes my gold, silver, and Bitcoin more valuable.”
Kiyosaki sees this order as pivotal since it empowers seasoned investors by granting them greater control over their investment strategies while preserving tax advantages.
The Ongoing Debate: ETFs vs Direct Ownership
The latest comments from Kiyosaki have reignited an age-old debate within the cryptocurrency community. On one side stand purists who advocate holding Bitcoin directly without reliance on Wall Street products; on the other side are those who view ETFs as a convenient method to gain exposure without dealing with complexities such as wallets or private keys.
A differing opinion emerged from another user: “Those who simply want their wealth to grow are consciously choosing to delegate monitoring and management tasks to mutual funds. While picking individual stocks can be rewarding it isn’t essential for everyone.”
This perspective highlights why billions continue flowing into ETF investments despite criticism from figures like Kiyosaki.
Also Read : Why Crypto Market is Up Today?,
The Popularity of Crypto ETFs Explained:
- Diversification: Access a variety of assets rather than relying solely on one investment option.
- User-Friendly Access: Can be traded through standard brokerage accounts without needing crypto wallets.
- Enhanced Security Measures: Regulated investment vehicles minimize risks associated with hacks or lost access keys.
- Expert Management Services: Professionals oversee daily market fluctuations effectively.
Ahead of Fed’s Decision – Bitcoin Rises Again
Currently priced at $116786 ,Bitcoin has increased by 0 .93 % over the past day . Traders eagerly await news regarding interest rates from The Federal Reserve , which markets anticipate will result in a cut by 25 basis points . Lower rates typically enhance appeal towards riskier assets such as bitcoin due largely due historical trends indicating strong returns during Q4 since2013 averaging around85%. Analysts including Tom Lee predict potential “monster moves” if monetary policy shifts favorably .