Itaú Asset Management recommends an allocation to bitcoin of between 1% and 3% to diversify investments and hedge against currency volatility.
Itaú Asset Management, the investment arm of Itaú Unibanco – Brazil’s largest private bank – has published a recommendation encouraging investors to allocate between 1% and 3% of their portfolios to bitcoin over the coming year.
In a recent research report, Renato Eid of Itaú Asset highlighted how a global environment marked by geopolitical tensions, shifts in monetary policy, and persistent currency risks strengthens the case for including bitcoin as a complementary asset within investment strategies.
The expert described bitcoin as “an asset distinct from fixed income, traditional stocks, or domestic markets, with its own dynamics, return potential, and — due to its global and decentralized nature — a currency hedging function.”
Eid argued that a small but consistent allocation to bitcoin can help mitigate risks that traditional assets fail to cover. Citing internal bank data, he pointed to a low correlation between BITI11 – the locally listed spot Bitcoin ETF – and other major asset classes, supporting the case for adding a modest BTC position to improve overall portfolio balance.
“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 wrote.
In September, Itaú Asset established an independent crypto division and appointed João Marco Braga da Cunha, former executive at Hashdex, to lead it. The unit was built on Itaú’s existing digital asset offerings, including a Bitcoin ETF and a pension fund with exposure to digital assets. Itaú also plans to develop a broader range of products, spanning fixed-income-like instruments to higher-volatility strategies such as derivatives and staking.
