Itaú Asset Management, the investment arm of Brazil's largest private bank, has recommended investors allocate 1% to 3% of their portfolios to Bitcoin in 2026.
The guidance, which was issued earlier this week, comes despite Bitcoin’s turbulent 2025, which saw the cryptocurrency surge to an all-time high above $125,000 in October before retreating to current levels around $90,000.
Renato Eid, head of beta strategies at Itaú Asset, said the global backdrop of geopolitical tension and persistent currency risks strengthens the case for adding cryptocurrency exposure.
What Happened
Itaú Asset issued a research note recommending modest Bitcoin holdings as a portfolio diversifier.
The bank called Bitcoin "an asset distinct from fixed income, traditional stocks, or domestic markets" with its own return dynamics.
Brazilian investors experienced heightened volatility as the real strengthened approximately 17% against the dollar this year.
This currency movement amplified local losses for investors holding dollar-denominated assets like Bitcoin.
Itaú's internal data showed low correlation between BITI11, its locally listed Bitcoin exchange-traded fund, and other major asset classes.
The bank created a dedicated crypto division in September and appointed former Hashdex executive João Marco Braga da Cunha to lead it.
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Why It Matters
The recommendation represents a significant endorsement from an institution managing $185 billion in assets.
Itaú Asset joins Morgan Stanley and Bank of America in recommending small crypto allocations, with those institutions suggesting 2-4% and 1-4% respectively.
The guidance emphasizes Bitcoin's role as a complementary portfolio component rather than a core holding.
Eid noted the allocation aims to capture returns uncorrelated with domestic cycles while providing partial protection against currency depreciation.
The crypto division plans to develop products ranging from fixed-income-style instruments to higher-volatility strategies like derivatives and staking.
Itaú already offers direct cryptocurrency trading through its mobile app, with custody handled in-house.
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