Bitcoin made simple: a chat with Isabella Zagato about Sygnia’s new fund

We sat down with Isabella Zagato from Sygnia to talk about the exciting new Sygnia Life Bitcoin Plus Fund – and why it might be perfect for investors who’ve been curious about crypto but didn’t know what to ask.

Hey, Isabella! So bitcoin investing – it sounds pretty intimidating for someone like me, who can barely figure out online banking. What’s this new fund all about?

I totally get that! That’s exactly why we created the Sygnia Life Bitcoin Plus Fund. With this fund, you don’t have to become a crypto expert or worry about digital wallets. We’ve basically taken bitcoin investing and wrapped it in a pleasingly familiar package that works just like any other investment fund you might already have.

Okay, that sounds less scary. But help me understand – if I want to invest in bitcoin, why can’t I just buy it directly?

You absolutely can! Some people do buy bitcoin directly on local exchanges, or they use their overseas allowances to buy it internationally. But here’s the catch – that means you’re responsible for storing it safely, safeguarding private keys, dealing with potential hacks and breaches… it’s a lot. Our fund gives you bitcoin exposure without any of that hassle. And you get professional management and regulatory protection.

Speaking of regulations, I keep hearing that crypto is this wild west, an unregulated space. How do I know this is safe?

Great question! Sygnia has been trying to launch a bitcoin fund for years – we first attempted it back in 2018, then again in 2021. Both times the JSE said “not yet”, because the JSE lacked a framework for the inclusion of crypto within listed funds, and there were challenges establishing regulations around crypto. Things have really changed now, though. Crypto was officially recognised as a financial product in South Africa in 2022, and now we’ve found a way to offer bitcoin exposure through our existing, regulated platform structures. Under regulation 28 and CISCA, however, it cannot be held in retirement funds or unit trusts.

So what exactly am I investing in when I buy into this fund?

We track the iShares Bitcoin Trust ETF – that’s IBIT for short. It’s run by BlackRock, the world’s largest asset manager and largest provider of ETFs. This ETF has gained a huge amount of traction over the last year and a half – it launched in January 2024 and already manages over $70 billion! To put that in perspective, it represented about 1% of all bitcoin in circulation within its first year.

Wow, that’s huge! But what makes IBIT so special?

It’s pretty mind-blowing – IBIT has already grown bigger than BlackRock’s Gold Trust Fund. We’re talking $70 billion in total assets for IBIT versus $45 billion for gold. It’s the largest bitcoin ETF on the market, attracting its $70 billion more quickly than any other ETF on the market. That shows you just how much institutional demand there is for bitcoin exposure. These aren’t just individual investors any more; it’sglobal pension funds, investment firms, insurance companies, serious institutional money.

You mentioned something called “portable alpha technology” – what’s that in plain English?

Basically, instead of just giving you exactly what IBIT does, we use derivatives to replicate IBIT’s returns while investing the cash in the South African money market to boost the returns our investors will receive without significantly increasing the portfolio’s risk. Think of it as getting bitcoin exposure with a little boost on top.

That sounds great, but I’m still nervous about bitcoin’s volatility. Doesn’t it go up and down like crazy?

Bitcoin can be volatile, but here’s the thing: that’s exactly why many investors are adding it to their portfolios. It doesn’t move with traditional financial markets, so it can actually help diversify your overall investment mix. Plus, with inflation being such a concern these days, bitcoin is increasingly seen as a potential hedge.

How would I actually invest? Do I need a minimum amount?

It’s really straightforward! If you already have a living annuity with us, you can access it directly through the Sygnia platform. If you’re a regular direct investor, we offer it through a five-year sinking fund structure. No entry-level bitcoin knowledge is required – it’s the same process you’d use for any other fund.

Five years sounds like a long time. What if I change my mind?

The five-year structure is specifically for direct investors and is designed to give the investment time to work. Remember, we’re talking about bitcoin here – it’s a long-term play. You wouldn’t want to be forced to sell during a bad week or month. The structure actually protects you from making emotional decisions.

I keep hearing that the JSE might have bitcoin funds soon anyway. Should I just wait?

That’s true – the JSE has indicated that crypto funds might be available by early 2026, but there’s no guarantee on timing, as regulatory hurdles will have to be overcome first. Meanwhile, you’re missing out on potential exposure to what’s already become the world’s largest bitcoin ETF. Why wait?

What about fees and costs? I imagine there must be some catch.

Like any investment fund, there are fees, but they’re transparent and competitive. Remember, you’re getting professional management, regulatory compliance and that portable alpha enhancement – all without having to deal with crypto exchanges, custody or any of the other technical headaches.

This actually sounds pretty sensible. Any final thoughts for someone like me who’s been bitcoin-curious but cautious?

Look, bitcoin isn’t going anywhere. Major institutions like BlackRock, even national reserves are getting involved. The question isn’t whether bitcoin will be part of the financial system – it already is. The question is whether you want to participate in a simple, regulated way or keep watching from the sidelines.

Our fund basically gives you a first-class seat to the bitcoin revolution without needing to become a crypto expert. Sometimes the best way to dip your toe in the water is with a guide who knows what they’re doing.

Thanks, Isabella! This has been really helpful. Where can people learn more?

Just visit our website or speak to your financial advisor. We’ve got all the fund information and fact sheets, and our team is ready to answer any questions. The digital asset revolution is happening – we’re just making it accessible to everyone.

Ready to explore bitcoin investing the simple way? The Sygnia Life Bitcoin Plus Fund offers regulated exposure to the world’s leading bitcoin ETF without the complexity of direct crypto ownership.