South Africa's Sygnia Advises Caps on Bitcoin ETF Exposure Amid Volatility

South African asset manager Sygnia Ltd., which manages around $20 billion in assets, has launched the Sygnia Life Bitcoin Plus fund, a Bitcoin exchange-traded fund (ETF) benchmarked against the iShares Bitcoin Trust ETF. Despite strong inflows and growing investor interest since its June launch, Sygnia CEO Magda Wierzycka urges clients to limit their exposure to Bitcoin to no more than 5% of discretionary or retirement portfolios due to the asset's significant volatility and risk. Wierzycka emphasizes that Bitcoin should only be a small part of a diversified investment strategy, especially in emerging markets like South Africa where the per capita GDP is low, and extreme price swings could severely impact savings. The firm actively intervenes to dissuade investors from shifting their entire portfolios into the crypto fund, highlighting responsible communication and realistic expectations. Sygnia now views Bitcoin as a legitimate long-term investment rather than purely speculative but continues to caution about the risks. The company also plans to expand its crypto offerings on the Johannesburg Stock Exchange pending regulatory approval after a previous blocked attempt.