Quick Breakdown
- Sygnia CEO urges caution: Clients advised not to allocate more than 5% to Bitcoin ETF due to volatility.
- ETF gaining traction: Sygnia Life Bitcoin Plus has seen strong inflows since its June debut.
- Long-term view emerges: Wierzycka now sees Bitcoin as a viable long-term play despite calling it overpriced.
Magda Wierzycka, CEO of South African investment giant Sygnia, has adviced clients not to overexpose themselves to the company’s Bitcoin exchange-traded fund (ETF), citing the cryptocurrency’s extreme price swings.
Speaking to Bloomberg TV on Monday, Wierzycka said Sygnia will actively step in to ensure investors don’t allocate too much of their portfolios to its Sygnia Life Bitcoin Plus ETF, which tracks BlackRock’s iShares Bitcoin Trust.
The fund’s fact sheet recommends that investors cap their exposure at no more than 5% of discretionary assets or retirement annuities.
Sygnia Bitcoin ETF sees “significant” inflows
The Sygnia Life Bitcoin Plus ETF, launched in June, has recorded what Wierzycka described as “very, very significant” inflows. However, she declined to reveal exact figures.
The ETF does not allow direct Bitcoin ownership but has attracted strong demand amid rising interest in crypto-linked products. Bitcoin’s recent trading range has fluctuated between $111,644 and $114,548 in the past 24 hours, with a seven-day range between $111,933 and $117,851, according to CoinGecko.
Plans for more crypto ETFs
Despite warning about overexposure, Wierzycka confirmed that Sygnia intends to launch additional crypto ETFs on the Johannesburg Stock Exchange (JSE) after an earlier attempt was stalled by regulatory barriers.
Her comments follow record inflows into digital asset products last week, with crypto investment vehicles pulling in $1.9 billion, led by Bitcoin ($977 million) and Ether ($772 million).
Bitcoin: from speculation to long-term play
Although Wierzycka urged caution, she admitted her own outlook on Bitcoin has shifted. She now considers the asset a long-term investment, though she believes the cryptocurrency is overpriced at current levels above $112,000 per coin.
Other industry figures have taken more bullish stances, Arthur Hayes, co-founder of BitMEX, predicts that U.S. Treasury bond buybacks could significantly boost market liquidity, potentially driving Bitcoin to as high as $110,000, with a possibility of reaching $200,000. Michael Saylor, founder of Strategy, has reiterated his long-term vision of $21 million per Bitcoin by 2042.
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