Brazil’s largest bank recommends a 3% Bitcoin portfolio allocation: ‘real diversification’
A partner at the investment arm of Itaú Unibanco, the largest private bank in Latin America, is urging investors to allocate a portion of their portfolios to bitcoin as a "dual opportunity" for asset diversification and currency protection. In a recent research note, Renato Eid, Itaú Asset Management’s head of beta strategies and responsible investment, recommended a "calibrated" allocation of 1% to 3% in the cryptocurrency. He also warned against trying to time the market and emphasized maintaining a long-term horizon."The idea is not to make crypto assets the core of the portfolio, but rather to integrate them as a complementary component," Eid wrote. "The goal is to capture returns uncorrelated with domestic cycles, partially protect against currency devaluation, and add potential for long-term appreciation."The column explicitly references its own BITI11 fund, a Brazilian-listed product that offers bitcoin exposure through an ETF wrapper. The ETF began trading on Brazil’s B3 exchange in 2022 as part of a partnership between Galaxy Digital and Itaú Asset. The ETF has assets under management worth about $115.6 million, per . "Maintaining and/or adding BITI11 to your portfolio represents a dual opportunity — international diversification + currency protection/global store of value," Eid wrote. Eid’s pitch leans heavily on a Brazil-specific problem: currency swings. Brazil’s real slid to record lows in December 2024 — Reuters reported it fell as low as 6.30 per U.S. dollar during the month — which bolsters the argument for holding some globally priced assets as partial protection against FX shocks. The currency is currently trading at about 5.42 per U.S. dollar. The note also fits with Itaú’s recent crypto buildout. Itaú Unibanco launched bitcoin and ether trading inside íon in December 2023, with the bank acting as custodian. Brazil's central bank recently released new rules for domestic digital asset firms, mandating they register with the central bank to operate legally in the country, The Block previously reported. Bank of America recently recommended a similar 1-4% crypto allocation for its wealth clients, bringing the TradFi giant in line with Wall Street's growing acceptance of crypto. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.