Despite Bitcoin’s record run past $125,000, a $20 billion South African investment fund is urging caution.
The fund’s latest investor note advises against allocating all capital to crypto, emphasizing portfolio diversification as key to long-term stability.
While crypto remains one of the best-performing asset classes, fund managers warn that volatility, liquidity risks, and unregulated exposure can amplify downside risks.
See more related: South African Reserve Bank Warns on Crypto Risks
Context
The warning comes as Bitcoin becomes the seventh most valuable global asset, surpassing Amazon by market cap. African investors have flocked to crypto for returns and currency hedging, but institutional caution suggests a maturing outlook.
Balanced Perspective
Rather than discouraging crypto, analysts believe this guidance signals a more measured institutional approach — integrating digital assets into diversified portfolios, rather than betting everything on them.
