South Africa’s wealth management giant recommends clients be overexposed to Bitcoin

Sygnia Ltd. of South Africa, a $2 billion asset manager, is urging its clients to avoid focusing their portfolio on Bitcoin (BTC), despite strong demand for recently launched crypto funds, Bloomberg News reported on September 22.

The Cape Town-based company advises investors not to commit more than 5% of discretionary assets or retirement annuities to the Sygnia Life Bitcoin Plus Fund, which tracks ISHARES BITCOIN TRUST ETFs.

The company said it would intervene when a customer attempts to switch a full portfolio to a product by citing the extreme volatility of the underlying asset.

Bitcoin has skyrocketed 82% over the past year, but as of press time it had slipped 2.75% to $112,100 on Monday.

Market fluctuations have been mitigated compared to 10 years ago, but sudden price movements still pose significant risks, especially in emerging markets like South Africa.

Sygnia launched the Bitcoin ETF in June and reported significant impact, reflecting the growing enthusiasm of retail and institutional investors.

Following previous unsuccessful attempts, the company plans to introduce additional crypto exchange products to the Johannesburg Stock Exchange once regulatory barriers are resolved.

Sygnia now describes Bitcoin as a long-term investment opportunity rather than purely speculative, but continues to emphasize that Crypto should remain a small component of a diverse strategy.

The company stressed that Bitcoin is still very unstable, warning that excessive exposure could lead to significant financial losses.

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