South Africa’s second-largest multi-manager, Sygnia Ltd., has warned clients to be careful about overexposure to its newly launched Bitcoin exchange-traded fund (ETF), Sygnia Life Bitcoin Plus.
Despite strong investor interest in the product, the $20 billion asset manager is pressing investors not to lean too much on Bitcoin in their portfolios.
Speaking in an interview with Bloomberg TV, Sygnia’s Chief Executive Officer, Magda Wierzycka, stressed that the company would step in if clients moved too much capital into the fund, which is benchmarked against BlackRock’s iShares Bitcoin Trust.
Sygnia boss speaks on Bitcoin’s market risks
The primary concern, Wierzycka explained, lies in Bitcoin’s volatility. “The underlying asset is highly volatile. You need to be very sure about the messaging around it, and you need to be sure that you don’t make promises you can’t meet,” she said.
Sygnia has even issued a guideline in its fact sheet advising that no more than 5 per cent of discretionary investments or retirement annuities should be allocated to the Bitcoin ETF.
The firm also directly contacts clients who attempt to exceed this limit.
Bitcoin has experienced such turbulence in recent weeks, trading between $109,497 and $109,170 within just 24 hours. According to Coingecko, the coin’s seven-day range has also stayed wide, between $111,933 and $117,851.
Even with the warning, she has softened her stance on the cryptocurrency’s broader outlook. She acknowledged that Bitcoin is turning into a long-term play, a shift from her previous scepticism that it was merely speculative.
At the same time, she argued the token remains overpriced at current levels, with Bitcoin trading above $112,000 following a recent dip.
Her measured tone comes as the firm eyes future crypto ETF offerings on the Johannesburg Stock Exchange.
A previous attempt to roll out such products fell through due to regulatory restrictions, but the company is encouraged by shifting policies in South Africa, which has one of Africa’s most advanced financial markets.
Rising crypto ETF demand, yet risk remains
The global movement behind crypto ETFs highlights the stakes of her cautious message. Exchange-traded products attracted $1.9 billion in inflows last week, with Bitcoin accounting for nearly half that total at $977 million.
Yet she continues to emphasise balance over excitement. The ETF has drawn what Wierzycka called very, very significant inflows since June, but its management is clear: investors should treat it as a high-risk satellite holding, not a portfolio cornerstone.