Market News

Brazil's Itaú Unibanco Recommends Bitcoin Allocation for Enhanced Portfolio Diversity

Brazil's largest private bank, Itaú Unibanco, has issued a recommendation for investors to consider allocating 1% to 3% of their portfolios to Bitcoin, starting in 2026.

This guidance arises from the bank's assessment of Bitcoin's low correlation with traditional assets, providing a potential hedge against local currency fluctuations.

Itaú has also established a dedicated crypto division to facilitate access to regulated crypto tools for its clients, emphasizing its commitment to the digital asset space.

Currently, Brazilian investors have the option to gain exposure to Bitcoin through the IT Now Bloomberg Galaxy Bitcoin ETF, known as BITI11, launched in November 2022.

This ETF represents a more accessible way for local investors to engage with Bitcoin within the Brazilian market.

The bank's asset management division oversees about R$850 million in its crypto funds and ETFs, a modest sum that highlights its readiness to cater to crypto-demand.

Renato Eid, a partner at Itaú Asset Management, reinforces the importance of maintaining a long-term perspective and cautions against market timing.

Relying on the current economic backdrop, characterized by significant currency depreciation, Itaú positions Bitcoin as a strategic component for risk diversification and potential appreciation.

The bank's guidance signals a shift towards greater acceptance of cryptocurrencies within traditional finance, aligning with similar recommendations from major institutions.

As Itaú anticipates growing interest, additional crypto product offerings are expected, marking a notable evolution in Brazil’s investment landscape.