- Itaú Asset Management recommends investors allocate 1% to 3% of their portfolios to Bitcoin primarily for diversification benefits.
- The advice aligns with other major firms (e.g., Bank of America, BlackRock), suggesting BTC should be a small, steady add-on sized to risk tolerance, not a core holding.
- Despite Bitcoin’s volatility, Itaú argues its status as a global asset offers potential protection against local market pressures and currency depreciation (the Real).
Itaú Asset Management is telling investors to consider putting 1% to 3% of their portfolio into Bitcoin (BTC). The main reason is diversification.
In a note released to investors, Itaú says Bitcoin often moves differently from Brazil’s usual assets, so a small position can reduce reliance on local markets and local currency moves.
This recommendation lines up with what other large firms are saying. Bank of America has allowed wealth advisors to suggest up to 4% in BTC, and BlackRock has pointed to around 2%. Itaú’s message is similar in the sense that BTC should not be the core of a portfolio. It should be a small add-on sized to the investor’s risk tolerance.
The note also highlights how volatile Bitcoin is. It ran to a record near US$126K (AU$190K) this year and later fell back below the US$85K (AU$127K).
Brazilian investors can feel even bigger swings because their returns are affected by the real moving against the dollar. A Brazil-listed Bitcoin ETF like BITI11 can rise or fall in reais not only because BTC moves, but because the currency moves too.
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Bitcoin Can Hold Differently Despite Market Volatility
Even with that volatility, Itaú argues Bitcoin can help in certain stress periods. Because it is a global asset, it may hold up differently when local markets or the local currency are under pressure.
Anyway, Itaú’s advice is not to trade in and out, but to hold a small allocation steadily and ignore short-term price noise. The point is long-term exposure and some protection against currency depreciation and global shocks, not trying to catch the perfect entry.
Brazil recently unveiled sweeping crypto regulation. The country’s central bank approved its most thorough framework last month, requiring all virtual asset service providers (VASP) to obtain authorisation and meet banking-style standards for things like AML protection, governance, consumer protection, etc.
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