Bitcoin Enters Mainstream Portfolio Strategy in Brazil
Bitcoin is no longer being treated as a fringe asset by Brazil’s largest private bank. Itaú Unibanco, through its investment arm Itaú Asset Management, is now formally recommending that investors allocate between 1% and 3% of their portfolios to Bitcoin, citing diversification benefits and protection against currency devaluation.
The recommendation comes from Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management, who outlined the strategy in a recent research note. According to Eid, Bitcoin should not replace traditional assets, but instead complement existing portfolios as a long-term, uncorrelated investment.
Bitcoin Positioned as Hedge Against Currency Risk
Currency volatility remains a key concern for Brazilian investors, and that risk is central to Itaú’s argument. Brazil’s real hit record lows in late 2024, briefly trading near 6.30 per U.S. dollar, underscoring the vulnerability of domestic savings to foreign exchange shocks.
Eid emphasized that Bitcoin’s global pricing and limited supply make it a useful hedge in environments where fiat currencies face persistent pressure. While Bitcoin remains volatile, its long-term performance and independence from local economic cycles offer investors an alternative form of protection.
BITI11 ETF Anchors Itaú’s Crypto Strategy
The recommendation directly references BITI11, Itaú’s Brazil-listed Bitcoin ETF, which provides exposure to BTC through a regulated exchange-traded structure. The fund, launched in 2022 in partnership with Galaxy Digital, trades on Brazil’s B3 exchange and currently manages over $115 million in assets.
By using an ETF wrapper, Itaú positions Bitcoin as institutionally accessible, allowing investors to gain exposure without directly managing wallets or private keys. The bank acts as custodian for its crypto offerings, reinforcing trust among more conservative clients.
Long-Term Approach Over Market Timing
Itaú also cautioned investors against attempting to time Bitcoin’s price movements, stressing that the recommended allocation is designed for long-term positioning, not short-term speculation. The bank framed Bitcoin as a structural portfolio component rather than a tactical trade.
This approach mirrors guidance from other global financial institutions, including Bank of America, which recently advised clients to consider a 1% to 4% allocation to digital assets based on risk tolerance.
Brazil’s Banks Embrace Regulated Crypto Exposure
Itaú’s recommendation aligns with its broader expansion into digital assets. In late 2023, the bank launched Bitcoin and Ether trading services within its íon investment platform, offering custody and execution under a regulated framework.
At the same time, Brazil’s central bank has introduced new rules requiring domestic crypto firms to register and comply with oversight standards, signaling a more mature regulatory environment that supports institutional participation.
As regulation tightens and adoption grows, Bitcoin is increasingly being framed as a strategic asset, not just a speculative bet - especially in economies where currency stability remains a persistent concern.
