South African asset manager Sygnia Ltd. has advised investors to limit their exposure to its newly launched Bitcoin ETF, the Sygnia Life Bitcoin Plus fund. CEO Magda Wierzycka recommended that cryptocurrencies should not exceed 5% of an investment portfolio due to their inherent volatility. The fund, which uses the iShares Bitcoin Trust ETF as a benchmark, has attracted significant inflows.
Despite Bitcoin's 82% increase over the past year, it remains volatile, with a recent 2.3% drop to $112,735.12 in Johannesburg. Sygnia has been actively reaching out to investors making large allocations to ensure they are aware of the risks involved.
Sygnia Cautions Against Overexposure to Bitcoin ETF
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