Sygnia, a South African investment firm managing $20 billion, has urged its clients to exercise caution when investing in its own Bitcoin-focused exchange-traded fund (ETF).
The company stated that while the product has gained strong interest, investors should limit their exposure due to Bitcoin’s unpredictable price changes.
Magda Wierzycka, Sygnia’s CEO, explained in an interview with Bloomberg TV that the firm would step in if it noticed investors shifting too much of their portfolios into its Bitcoin fund.
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This fund, known as Sygnia Life Bitcoin Plus, is linked to the performance of BlackRock’s iShares Bitcoin Trust.
Despite this warning, Wierzycka acknowledged that her view of Bitcoin
$112,082.23
has changed. While she had previously treated it as a short-term bet, she currently sees it as something that could be held over a longer time frame.
She noted that the asset is currently overvalued. At the time of her comments, Bitcoin was trading at more than $112,000 per coin, even after a recent price drop.
Additionally, Sygnia advises that no more than 5% of a person’s retirement savings or discretionary funds be invested in the Bitcoin ETF. Wierzycka stressed that investors must be cautious in how the product is communicated and avoid making any unrealistic promises.
While she did not reveal the exact amount of money flowing into the fund, she mentioned that it had attracted “very, very significant” interest.
Meanwhile, Grayscale has received approval from the US Securities and Exchange Commission (SEC) to launch the first exchange-traded product (ETP) that holds multiple cryptocurrencies. What did CEO Peter Mintzberg say? Read the full story.
