Top asset manager wants to launch Bitcoin fund in South Africa

Multi-manager Sygnia said it remained committed to being the first provider in South Africa to launch a Bitcoin exchange-traded fund (ETF), subject to the appropriate regulatory environment being in place.

“Any potential launch is contingent on further developments across several areas,” Sygnia co-head of investments, Iain Anderson, told MyBroadband.

“These include the JSE’s listing requirements, South African Reserve Bank considerations, and the availability of reliable custody solutions.”

Anderson said these requirements remained complex and continued to evolve. “Sygnia is closely monitoring the regulatory landscape to ensure that any future product is both fully compliant and cost-effective.”

Sygnia was founded by Magda Wierzycka, who is also the company’s chief executive officer. Sygnia has grown its assets under management to over R460 billion in 20 years.

The company has been a trailblazer in technology and cryptocurrency-related investments in South Africa, and previously launched applications to list a Bitcoin ETF on the Johannesburg Stock Exchange (JSE).

When the JSE turned down Sygnia’s applications in 2017 and 2021, it said it wasn’t ready to approve cryptocurrency listings because there wasn’t a regulatory framework for them in South Africa.

“Both proposals were rejected by the JSE due to uncertainty around cryptocurrency regulations and unclear CISCA and Regulation 28 compliance issues,” Sygnia stated.

Since then, the FSCA declared crypto a financial product and brought crypto asset service providers (CASPs) into the framework of the Financial Advisory and Intermediary Services Act.

The FSCA issued South Africa’s first CASP licences in March 2024. However, Sygnia explained that listing crypto-based financial instruments would require additional regulatory changes.

Additionally, the South African Reserve Bank has not classified cryptocurrency as either an offshore or onshore asset, creating uncertainty for institutional investors.

There is currently no indication of when or even whether these regulatory bottlenecks would be resolved. To sidestep the issue, Sygnia launched a product that tracks BlackRock’s iShares Bitcoin Trust ETF.

The Sygnia Life Bitcoin Plus Fund launched without much fanfare on 1 June 2025. It offers investors a way to allocate a portion of their portfolio to crypto without self-managing the risks of direct investments.

“No digital wallets, no exchange accounts — professional management handles everything while you access the digital asset revolution,” Sygnia stated.

“BlackRock’s IBIT, launched in January 2024, has become a phenomenal success story. It accumulated over $17 billion in assets in its first year, representing approximately 1% of all bitcoin in circulation.”

As of 18 May 2026, BlackRock holds 801,477.1 BTC through its iShares Bitcoin Trust (IBIT), which equates to about 3.8% of the total Bitcoin supply currently in circulation.

After factoring in the 2.3 million to 4 million bitcoins believed to be permanently lost, BlackRock’s holdings become 4.3% to 4.7% of the effective circulating supply.

IBIT is the largest spot bitcoin ETF in the world and has already surpassed BlackRock’s Gold Trust, managing over $70 billion compared to gold’s $45 billion.

“While others continue to debate bitcoin, the smart money is already in position,” Sygnia said. However, Sygnia also cautions customers not to switch all their investments to Bitcoin.

Wierzycka previously said Sygnia would dissuade investors from switching all their assets into its high-risk Bitcoin Plus Fund.

“We actually intervene with a view to stopping the investor from doing something silly by switching,” Wierzycka said in an interview with Bloomberg TV.

She said cryptocurrencies should form a very small portion of a diversified investment strategy instead of betting everything on Bitcoin.

Wierzycka said she changed her view on the digital currency and no longer saw it as speculative, but as a “long-term play.”

Sygnia advises investors not to put more than 5% of their “living annuity or discretionary assets in these funds,” according to the fact-sheet. 

Wierzycka said Sygnia calls investors to warn them if the company sees them switching to the Bitcoin fund.

“The underlying asset is highly volatile,” Wierzycka said. “You need to be very sure about the messaging around it, and you need to be sure that you don’t make promises that you can’t meet.”

Despite the company’s overabundance of caution, Sygnia said the Life Bitcoin Plus Fund has enjoyed steady inflows since launching, reflecting sustained and growing client interest

“The investment wrapper is a nice way to gain exposure to Bitcoin within a familiar, regulated structure. That said, it is not a one-size-fits-all solution,” it said.

“Rather, Sygnia is offering clients a convenient and accessible way to gain exposure to this asset class directly on our platform, suited to those who prefer a more traditional investment vehicle.”