Sygnia CEO Magda Wierzycka says the company is calling clients if they put too much into the Life Bitcoin Plus ETF due to high BTC volatility.
Sygnia Limits Clients on Bitcoin ETF Investments
$20 billion South African asset manager Sygnia has urged investors not to put too much into its Life Bitcoin Plus ETF, which it launched in June. The company’s CEO, Magda Wierzycka, told Bloomberg TV that her team is even calling clients if their allocation to the Bitcoin ETF exceeds a safe level.
Wierzycka said the main risk is the high volatility of the bitcoin price. In a fact sheet, the company advises investing no more than 5% of discretionary assets or retirement savings.
ETF Demand Is Growing
Life Bitcoin Plus is based on BlackRock’s iShares Bitcoin Trust and has already received “very significant” investments, although Sygnia did not disclose specific figures. The company also plans to launch new crypto ETFs on the Johannesburg Stock Exchange.
Cryptocurrency ETPs attracted $1.9 billion last week, of which $977 million went to Bitcoin and $772 million to Ethereum.
Bitcoin as a long-term play
Despite her cautious messaging, Wierzycka admitted that her attitude towards BTC has changed: she now sees it as a long-term asset, not just a speculative instrument. At the same time, the CEO believes that Bitcoin is overvalued at more than $112,000.
There is no shortage of more aggressive forecasts in the market: BitMEX co-founder Arthur Hayes expects $250,000 for BTC by the end of the year, and Michael Saylor talks about $21 million for the coin by 2042.
