South Africa’s Sygnia warns against all‑in Bitcoin bets
After launching its Bitcoin fund in June, Sygnia ($20B AUM) reports "very significant" investor interest but intervenes when clients attempt wholesale switches. CEO Magda Wierzycka cites concentration risks and volatility concerns, especially given South Africa's $15,990 per-capita GDP.
Sygnia’s chief executive Magda Wierzycka said the firm steps in if it sees investors attempting wholesale switches into the Bitcoin vehicle.
We actually intervene with a view of stopping the investor from doing something silly by switching,said Wierzycka in a Bloomberg TV interview.
She added that cryptocurrencies should make up only a very small portion of a broader strategy rather than an all‑in bet on Bitcoin.
The comments come after a sharp run for the asset. Bitcoin has risen about 82% over the past 12 months, though it was down roughly 2.3% to $112,735 as of mid‑morning in Johannesburg. Volatility has moderated to around 40%, from levels near 200% more than a decade ago, according to Bloomberg. Recent gains have also been linked to a friendlier US policy backdrop since President Trump’s election.
Wierzycka said the stakes are higher in an emerging market such as South Africa, where extreme market moves can erase savings. She pointed to the country’s per‑capita GDP of about $15,990, significantly below advanced‑economy levels. While she considers Bitcoin overpriced, her view has shifted from seeing it as purely speculative to calling it a long‑term play when sized appropriately.
Sygnia’s Life Bitcoin Plus fund uses the iShares Bitcoin Trust ETF as a benchmark, per the firm’s fact sheet. The fund has drawn “very, very significant” interest and inflows from enthusiasts, Wierzycka said, without disclosing specific amounts. According to the fact sheet, the company advises clients not to put more than 5% of their living‑annuity or discretionary assets into these funds.
The manager plans to pursue additional crypto ETFs on the Johannesburg Stock Exchange after a prior attempt faltered, Wierzycka said, adding that launches depend on resolving remaining regulatory constraints. In the meantime, Sygnia is proactively monitoring client behavior: if the firm detects switching from balanced mandates toward the Bitcoin fund, account teams call investors to warn them about concentration risk and volatility.
The underlying asset is highly volatile,Wierzycka said.
She noted that messaging must be precise and that the firm avoids making commitments it cannot meet – a stance to protect long‑term outcomes while allowing interested clients measured exposure to the asset class.
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