Sygnia, a $20 billion asset manager in South Africa, is warning investors to avoid overexposure to its Life Bitcoin Plus ETF, which launched in June. CEO Magda Wierzycka revealed that the firm proactively calls clients who allocate too much of their portfolio to this ETF, given Bitcoin's notorious price volatility. She acknowledges, however, that Bitcoin may still represent a long-term investment for some. Sygnia advises that investments in the Bitcoin vehicle should not exceed 5% of discretionary assets or retirement funds. Despite the ETF seeing significant interest and substantial inflows, specifics on those figures were not disclosed. BitMEX co-founder Arthur Hayes and Strategy founder Michael Saylor have voiced optimistic price forecasts for Bitcoin, but Wierzycka believes the cryptocurrency's current valuation is inflated, trading over $112,000 per coin. Sygnia plans to introduce more crypto ETFs on the Johannesburg Stock Exchange after previous regulatory hurdles.

Source 🔗