South African asset management giant advises clients against over exposure to Bitcoin

Sygnia Ltd. from South Africa, an asset manager of $ 20 billion, urges customers to prevent them from concentrating their portfolios in Bitcoin (BTC), despite a strong demand for his recently launched Crypto Fund, Bloomberg News, Bloomberg News reported on September 22.

The company established in Cape Town has advised investors not to commit more than 5% of their discretionary assets or pension body rates to the Sygnia Life Bitcoin Plus Fund, that the Ishares follows Bitcoin Trust ETF.

The company said it will intervene when customers try to change their entire portfolios to the product, with reference to the extreme volatility of the underlying asset.

Bitcoin has risen 82% in the past year, but fell 2.75% to $ 112,100 on Monday from the moment of the press.

Although market fluctuations have been moderated compared to a decade ago, sudden price movements are still significant risks, in particular in emerging markets such as South Africa, where the average income per head of the population is far below that of advanced economies.

Sygnia launched his Bitcoin ETF in June and reported substantial inflow, as a result of a growing enthusiasm at retail trade and institutional investors.

The company plans to introduce extra products ravaged by crypto exchange at the Johannesburg fair as soon as regulatory barriers have been resolved, after an earlier failed attempt.

Although Sygnia Bitcoin now describes as a long -term investment opportunity instead of purely speculative, it remains to emphasize that Crypto must remain a small part of a diversified strategy.

The company emphasized that Bitcoin is still very volatile and warned that overexposure could lead to significant financial losses.

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