Rich Dad author Kiyosaki warns to be cautious about holding Bitcoin in an ETF.

## Recommended Recognition of Differences Between Spot and ETF

On the 25th, Robert Kiyosaki, the author of the bestselling "Rich Dad Poor Dad," called for caution regarding ETFs (Exchange-Traded Funds) for cryptocurrencies such as Bitcoin (BTC).

Mr. Kiyosaki recommends ETFs such as gold, silver, and Bitcoin for the average investor, while also mentioning the following points of caution.

An ETF is like having a photo of a gun for self-defense, rather than a real 'weapon.' Sometimes, it is best to hold actual gold, silver, Bitcoin, and weapons.

Let's understand the difference between the best case of holding Spot and the best case of holding paper (in this case ETF). If you understand that difference and know how to utilize it, you are superior to the average investor.

Mr. Kiyosaki does not provide a detailed explanation of the differences that arise from holding ETFs instead of Spot.

Mr. Kiyosaki has repeatedly recommended investing in Bitcoin, gold, and silver as a way to prepare for distrust in the fiat currency US dollar and the risk of currency depreciation due to inflation.

The method of ETFs where investors do not actually hold the Spot carries risks related to the issuing company and counterparties, and Mr. Kiyosaki may have taken this into consideration.

On the other hand, ETFs also have the advantage of reducing the hassle of managing private keys and the associated risks for investors.

Alternatively, Mr. Kiyosaki may have referred to concerns about financial institutions issuing paper bonds for assets that they do not actually hold.

According to Cointelegraph, Eric Balchunas, an ETF analyst at Bloomberg, commented that there is institutional safety against misconduct involving not holding the underlying assets.

The Bitcoin Spot ETF must legally deposit assets with a custodian. Therefore, all shares of the ETF are tied to actual Bitcoins.

What is a Bitcoin Spot ETF?

An Exchange Traded Fund (ETF) that includes Bitcoin as an investment target. It involves actually purchasing Bitcoin and trading a trust (ETF) based on that Bitcoin on the stock market. Investors will be able to invest in its value without purchasing Bitcoin directly.

In September of last year, there were concerns from some investors that Coinbase might be purchasing Bitcoin borrowing certificates (IOUs) instead of spot Bitcoin for ETF issuers.

At this time, Coinbase CEO Brian Armstrong outright denied such speculation. Attorney Joe Calarco, who specializes in commercial litigation, also expressed the view that the feasibility of purchasing IOUs, due to the structure of ETFs, is "extremely low."