Catenaa, Saturday, September 27, 2025- South African asset manager Sygnia Ltd. is warning investors against going all-in on its newly launched Bitcoin ETF, emphasizing that cryptocurrency exposure should remain a small part of a diversified portfolio.
The Cape Town-based firm, which manages roughly 350 billion rand ($20 billion), introduced the Sygnia Life Bitcoin Plus fund in June.
Despite strong inflows, CEO Magda Wierzycka said the company actively contacts clients who appear to be shifting large sums into the ETF to discourage excessive exposure.
She recommended limiting crypto investments to no more than 5% of discretionary or annuity assets, citing the volatility of Bitcoin, particularly in emerging markets like South Africa.
Wierzycka noted that while Bitcoin has surged 82% in the past year, it remains highly volatile, with mid-Monday trading at $112,735.12 in Johannesburg. She said the extreme price swings could jeopardize life savings for investors in countries with lower per capita GDP.
The fund benchmarks against the iShares Bitcoin Trust ETF, and Sygnia plans to launch additional crypto ETFs pending regulatory approval.
Globally, Bitcoin exchange-traded products hold over 1.47 million BTC, around 7% of total supply, with U.S.-based ETFs dominating. BlackRock’s IBIT leads with 746,810 BTC, followed by Fidelity’s FBTC at nearly 199,500 BTC.
Momentum appears to be shifting, with Bitcoin ETPs seeing outflows in August while Ethereum funds attracted $3.95 billion, reflecting investor rotation into altcoins.
Wierzycka emphasized that despite Bitcoin’s potential as a long-term investment, careful allocation and risk management remain critical for retail investors amid ongoing market volatility.
