South Africa’s Sygnia warns investors to limit Bitcoin ETF exposure, citing volatility, even as CEO sees long-term potential.
South Africa’s $20 billion asset manager Sygnia is cautioning clients against over-investing in its Bitcoin exchange-traded fund, citing price volatility.
CEO Magda Wierzycka told Bloomberg TV the firm intervenes to stop portfolios from shifting too heavily into its Sygnia Life Bitcoin Plus ETF, benchmarked against BlackRock’s iShares Bitcoin Trust. “The underlying asset is highly volatile. You need to be sure about the messaging around it,” she said.
Sygnia’s fact sheet advises investors not to allocate more than 5% of discretionary assets or retirement annuities to the ETF. Still, Wierzycka acknowledged Bitcoin is becoming a “long-term play,” though overpriced at current levels above $112,000.
Launched in June, Sygnia’s Bitcoin ETF has seen “very significant” inflows, with plans to roll out more crypto ETFs on the Johannesburg Stock Exchange.
Global crypto inflows hit $1.9 billion last week, led by Bitcoin at $977 million and Ether at $772 million. Meanwhile, BitMEX co-founder Arthur Hayes forecasts Bitcoin could reach $250,000 this year, while Michael Saylor projects 21 million per coin by 2042.
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