Brazil’s Itaú Unibanco Recommends 1-3% Bitcoin Portfolio Allocation From 2026
Key Takeaways
- Brazil and Latin America’s largest private bank and asset manager, Itaú Unibanco, has released a research note recommending clients allocate 1%-3% of their portfolios for Bitcoin investments starting next year.
- The firm has called for a measured approach, warning against timing the market, and suggesting a disciplined, long-term mindset. They argued that bitcoin’s lack of correlation with traditional assets and its ability to absorb macroeconomic shocks make it a useful diversification tool.
- BTC’s volatility has significantly affected Brazilian investors, as the real’s 15% appreciation against the dollar amplified their losses in a year that saw prices swung between the $126,000 all-time high and $80,000.
- In September, Itaú Asset Management launched a dedicated crypto division that plans to expand its digital asset product catalogue. The firm currently offers a spot bitcoin ETF, a retirement fund with crypto exposure, and direct spot crypto trading.
Itaú Asset Management, the investment arm of Brazil’s largest private bank, Itaú Unibanco, is recommending investors allocate 1% to 3% of their portfolios in Bitcoin (BTC) from 2026. The firm manages over 1 trillion Brazilian real (BRL), roughly $185 billion, in assets for its clients.
The advice came in a year-end research note, in which the company’s head of beta strategies and responsible investments, Renato Eid, stated that bitcoin’s lack of correlation with traditional assets underscores its appeal as a complementary asset.
Itaú Asset Management Recommends Bitcoin Portfolio Allocation for Clients, Pointing Out Lack of Correlation With Traditional Assets During Macro Shocks
He called the alpha cryptocurrency an asset distinct from fixed income, traditional stocks, or domestic markets, with its own dynamics, return potential, and a currency hedging function due to its global and decentralized nature. The Itaú executive argued that ongoing geopolitical tensions, shifting monetary policy, and persistent currency risks strengthen bitcoin’s case.
Eid’s suggestion comes amid a volatile 2025 for BTC, where it started the year near $95,000 only to slide toward $78,000 during President Donald Trump’s tariff war with America’s trading partners, then surging to a new all-time high of $126,000 in October, before settling in the $90,000 range.
Brazilian investors have felt the brunt more than other global bitcoin traders, mainly due to the real (BRL) strengthening by about 15% against the U.S. dollar (USD), which amplified losses for local traders.
However, Eid has called for a measured approach and advised against turning crypto assets into the centerpiece of a portfolio, instead using them as a complementary asset that can help absorb the shocks from currency depreciation and global volatility, sized appropriately to the investor’s risk profile. He argued that a modest and steady bitcoin allocation can smooth risks and offer access to global returns that traditional investment assets may fail to hedge.
Citing Itaú’s internal data, he noted that there is a low correlation between the IT Now Bloomberg Galaxy Bitcoin ETF (BIT111) – the company’s locally-listed spot bitcoin exchange-traded fund – and other major asset classes.
“By allocating around 1% to 3% in their investment portfolio, investors will, in fact, be taking advantage of an asset that generates diversification,” the bank stated in its year-end note to investors.
Itaú Unibanco Launches Dedicated Crypto Division, Announces Plans to Expand Digital Asset Investment Products
The development comes as Itaú Asset Management created a standalone crypto division in September, which expanded on the firm’s existing digital asset offerings, such as BIT111 ETF and a retirement fund with digital asset exposure. The Latin American banking and investment giant announced plans to introduce more products, including a fixed-income-style instrument that provides exposure to higher-volatility crypto strategies, such as derivatives and staking. Former Hashdex managing director João Marco Braga da Cunha was appointed to lead the unit, which falls under its billion-dollar mutual funds arm.
Itaú’s mobile banking app already offers spot trading of 10 cryptocurrency pairs, including BTC, Ethereum (ETH), Solana (SOL), and USD Coin (USDC). It provides in-house custody services for these assets, ensuring secure storage and segregation for clients. The bank has expressed interest in expanding the service to add more digital assets.
Brazil has emerged as one of the largest crypto markets in the world, ranking 10th globally in Chainalysis’ 2024 Global Crypto Adoption Index. This growth was driven largely by a supportive regulatory framework. In 2023, the country implemented its first comprehensive crypto law, establishing a clear set of rules for virtual asset service providers and granting the Banco Central do Brasil oversight of the sector. Itaú launched its crypto trading platform for retail clients after the law took effect.
(At the time of writing, Bitcoin (BTC) is trading at $89,628 – down 0.58% in 24 hours.)
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