Itaú Asset Management, a division of Brazil’s leading private bank Itaú Unibanco, has advised investors to consider allocating between 1% and 3% of their investment portfolios to bitcoin by 2026. This recommendation emerges in light of a tumultuous year for cryptocurrencies, during which bitcoin experienced fluctuations, dropping from approximately $95,000 to $80,000 amid a tariff crisis, before surging to an unprecedented high of $125,000, and eventually stabilizing around $95,000.
Renato Eid, representing the asset management arm, articulated the rationale behind this investment recommendation. He emphasized the ongoing geopolitical tensions, evolving monetary policies, and persistent risks associated with traditional currencies as factors that enhance bitcoin’s appeal as a complementary asset. Describing bitcoin, Eid stated that it serves as “an asset distinct from fixed income, traditional stocks, or domestic markets,” highlighting its unique dynamics, return potential, and capabilities as a hedge against currency fluctuations due to its global and decentralized nature.
Brazilian investors, in particular, have felt bitcoin’s volatility more intensely, influenced by the Brazilian real’s appreciation of approximately 15% this year, which has exacerbated local losses. Nonetheless, Eid posited that even a modest allocation to bitcoin could help mitigate risks that conventional assets may not adequately address. According to Itaú’s internal analysis, there is a low correlation between BITI11, its locally-listed bitcoin ETF, and other significant asset classes, further bolstering the case for diversification.
The bank underscored the importance of strategic allocation, stating, “By allocating around 1% to 3% in their investment portfolio, investors will, in fact, be taking advantage of an asset that generates diversification.”
In a broader strategy to engage with the evolving digital asset landscape, Itaú Asset launched a dedicated bitcoin unit in September, helmed by João Marco Braga da Cunha, a former executive at Hashdex. This move significantly broadened Itaú’s offerings in the digital asset space, including the establishment of a bitcoin ETF and a retirement fund with bitcoin exposure. Looking ahead, the bank plans to introduce a variety of new products, ranging from fixed-income-style instruments to higher volatility strategies, such as derivatives and staking, to cater to the diverse interests of investors in the cryptocurrency market.
