Share
Brazil’s largest private bank is making a measured case for Bitcoin as part of a diversified portfolio. Itaú Asset Management has advised investors to allocate between 1% and 3% of their portfolios to Bitcoin, framing the asset as a complement rather than a core holding.
The guidance comes from a research note authored by Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management. His message stays cautious. Bitcoin, he argues, should play a supporting role aimed at diversification and partial protection against currency pressure.
Eid describes Bitcoin as offering a dual function. It can behave differently from domestic assets and it trades globally in US dollars. For Brazilian investors, that matters.
The Brazilian real has faced sharp swings in recent years. When the local currency weakens, returns tied to global assets can look different from those linked only to domestic markets. A small Bitcoin allocation, according to Itaú, may help reduce reliance on local economic cycles.
You are not being told to chase short-term price moves. The note warns against market timing and stresses a long-term view. Bitcoin’s role, as outlined by Itaú, is to sit alongside traditional assets rather than replace them.
The research note also points to Itaú’s own Brazil-listed Bitcoin ETF, BITI11. The fund trades on the B3 exchange and gives investors Bitcoin exposure through an ETF structure. It launched in 2022 through a partnership between Galaxy Digital and Itaú Asset Management.
BITI11 allows local investors to access Bitcoin without managing private keys or offshore accounts. Itaú’s analysis also highlights the ETF’s low correlation with several traditional asset classes, which the bank views as supportive of diversification at small portfolio weights. Returns, however, still reflect both Bitcoin’s price and movements in the real against the dollar, which can amplify gains or losses in local terms.
Itaú’s note treats this volatility as a reason for sizing exposure carefully. A 1–3% allocation limits risk while keeping potential diversification benefits.
The recommendation does not sit in isolation. Other large financial institutions have taken similar positions. Bank of America has allowed advisors to suggest crypto allocations of up to 4% for some clients. BlackRock has also referenced allocations around 2% in portfolio discussions.
The shared theme is restraint. Bitcoin appears as a small, steady add-on shaped by risk tolerance, not a dominant holding.
This advice also arrives as Brazil tightens oversight of digital asset firms. The central bank has approved a broad regulatory framework that requires virtual asset service providers to meet standards closer to those applied to banks.
For you as an investor, the message is narrow and clear. Itaú is not pitching Bitcoin as a bet on price direction. It is presenting it as a limited tool for diversification in a market shaped by currency risk and global shifts in asset allocation.
Share
