A South African ETF provider has urged investors to be cautious about investing in its Bitcoin fund.
- South African company Sygnia has warned investors not to invest all their funds in its Bitcoin ETF.
- The company's CEO, Magda Wierzycka, noted that the underlying asset is extremely volatile.
- In general, the organization recommends allocating up to 5% of capital to shares of such or similar funds.
Sygnia Ltd., a South African ETF provider, has warned investors against transferring all their funds to its Bitcoin fund, Bloomberg reports.
The firm launched the Sygnia Life Bitcoin Plus Fund in June 2025. According to its website, it offers Bitcoin exposure through a proxy solution in the form of the iShares Bitcoin Trust ETF, the largest spot exchange-traded fund based on the world's first cryptocurrency.
Magda Wierzycka, CEO of Sygnia, noted that the product is in significant demand. However, it is considered high-risk.
“We actually intervene to prevent investors from making stupid decisions related to switching,” Wierzycka noted.
She pointed out Bitcoin's high volatility. Deep price declines could be catastrophic for a market like South Africa, leading to a complete loss of savings.
As a reminder, Bitcoin experienced a sharp correction on September 22, 2025. Within an hour, the volume of futures contract liquidations exceeded $1 billion.
“The underlying asset is extremely volatile. You need to be very confident in what's being said about it and not make promises you can't keep,” she emphasized.
In its product information sheet, Sygnia recommends allocating no more than 5% of pension savings or available funds to such funds.
The company does not disclose the assets under management (AUM) of its product. However, the organization noted extremely high demand and significant inflow of funds.
Despite the warning to investors, Sygnia plans to launch additional cryptocurrency exchange-traded funds on the Johannesburg Stock Exchange, Wierzycka noted.
Source: cryptonews.net
