Key Takeaways
Itaú suggests a 1–3% bitcoin allocation from 2026 as a diversification tool, not a core holding.
Bitcoin may help hedge currency risk for Brazilian investors amid real–dollar swings.
The bank urges discipline and a long-term view to compensate for bitcoin’s volatility.
Itaú Sees Bitcoin as a Small Portfolio Hedge
Brazil’s biggest private bank, Itaú Unibanco, is telling investors to think about adding a small amount of bitcoin to their portfolios. This shows that large and traditional banks in Latin America are becoming more open to digital assets.
Itaú and its investment arm, Itaú Asset Management, say investors should put between 1% and 3% of their money into bitcoin starting in 2026. The bank clearly says bitcoin should not be a main investment. Instead, it should be a small addition that helps balance a portfolio and reduce some risks.
Renato Eid, an executive at Itaú Asset Management, explained that bitcoin is different from normal investments like stocks or bonds. He said:
“[Bitcoin is] 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.”
The bank’s advice comes during a time of global uncertainty. Inflation, political tensions, and changing interest rates have made investing more difficult. In Brazil, these problems are often worse because the local currency can change value quickly.
Itaú believes bitcoin can help because it does not usually move in the same direction as Brazilian stocks or bonds. This means that even a small amount of bitcoin can help spread risk in a portfolio.
Eid made it clear that the bank believes bitcoin should not take over an investor’s strategy. “The idea is not to make crypto assets the core of the portfolio,” he wrote. “But rather to integrate them as a complementary component.”
The bank also warns investors not to panic when prices move quickly. Bitcoin is known for strong ups and downs, and Itaú says reacting to short-term changes often leads to poor decisions. Eid advised:
“[The investment] requires moderation and discipline: defining a strategic allocation (e.g., 1%–3% of the total portfolio), maintaining a long-term horizon, and resisting the temptation to react to short-term fluctuations.”
One important point in Itaú’s analysis is currency risk. Bitcoin is priced globally, mainly in U.S. dollars. For Brazilian investors, this means returns are strongly affected by changes in the exchange rate.
When the Brazilian real weakens, bitcoin investments can look stronger in local currency terms. For example, in late 2024 the real fell sharply, which increased the value of bitcoin holdings for Brazilian investors.
At other times, when the real strengthens, bitcoin losses can feel worse locally. Itaú explains that this currency effect is a key reason to understand Bitcoin carefully. So, for Brazilian investors, returns are influenced not only by price changes but also by currency movements.
The bank says the 1% to 3% range is intentional. A 1% allocation is small enough to limit risk, while 3% is large enough to make a difference. Anything larger, the bank believes, could expose investors to too much volatility.
Itaú says bitcoin has a “hybrid character”. It is described as “part high-risk asset and part global store of value,” a combination that sets it apart from traditional investments.
Itaú is not just talking about Bitcoin, it is also offering ways to invest in it. Customers can buy bitcoin and ethereum through the bank’s Íon app. Itaú also offers a bitcoin exchange-traded fund called BITI11, which trades on Brazil’s stock exchange.
BITI11 (IT Now Bloomberg Galaxy Bitcoin ETF), was introduced in November 2022, through a partnership between Galaxy Digital and Itaú Asset Management.
100% of the sats go directly to the author
